Tencent and Baidu Reveal Tactics to Stay Competitive Amid US AI Chip Export Limits

Chinese tech giants are finding smart ways to stay in the AI chip race, even as the U.S. places tougher rules on exporting advanced chips. Two major companies — Tencent and Baidu — have shared how they are handling the pressure and continuing their work in artificial intelligence.

Tencent says it has a strong stockpile of graphics chips already in hand. These chips, also known as GPUs, help train large AI models. While many U.S. companies need huge clusters of GPUs, Tencent says it can do more with less by improving software and using fewer chips smartly. They are also exploring smaller AI models, which need less power and cost less to run.

In addition, Tencent is using chips made inside China and looking at custom chip designs. These steps reduce their need for foreign technology and help them keep growing their AI tools.

Baidu, which runs China’s biggest search engine, is taking a full-stack approach. This means it owns everything from cloud servers to the AI models and final products, like its ERNIE chatbot. Baidu says even without the most powerful chips, it can still build smart AI applications that work well.

The company is also saving money by running its software more efficiently. They make better use of their current chips by improving how their systems work. Baidu also believes China’s local chipmakers are getting better and will support long-term progress in AI.

Experts agree that China is behind the U.S. in making top GPUs. But they say China is making steady progress across the chip supply chain — from materials to final products. These efforts help companies find other ways to get the chips they need for AI.

Meanwhile, the U.S. chip ban may not be working as planned. Some American tech leaders say it is hurting U.S. companies more than China. For example, the CEO of a major U.S. chip firm recently called the ban a failure.

In short, Chinese companies are staying strong in AI by using local chips, smart software, and smaller models. Despite the U.S. rules, China is still moving forward in the global AI race.