Tencent and ByteDance made significant strides by acquiring a large number of NVIDIA’s top-tier AI GPUs in 2024. As a result, they positioned themselves just behind Microsoft, the largest buyer. Both companies ordered around 230,000 Hopper GPUs, including a special H20 version tailored to comply with U.S. export restrictions for China. This purchase even outpaced those of major tech companies like Google, Meta, Amazon, and Tesla/xAI.
Microsoft Leads the AI Hardware Market
Despite strong competition, Microsoft remained the leader in AI hardware, purchasing an impressive 485,000 Hopper chips. Consequently, Tencent and ByteDance’s purchases underscore China’s growing role in the global AI race, even amid trade restrictions.
Tencent and ByteDance’s Strategic Push
These substantial investments indicate Tencent and ByteDance’s desire to remain competitive in AI. Moreover, analysts expect this momentum to continue into 2025, reflecting China’s broader ambition to lead in advanced technology.
NVIDIA Dominates in AI Hardware
NVIDIA maintained its dominant position in the market, capturing 43% of total AI hardware spending in 2024. Although AMD gained some ground, many companies still favored NVIDIA’s Hopper series for their AI needs, solidifying NVIDIA’s lead.
U.S. Firms Shifting to In-House Chips
Meanwhile, U.S. tech giants like Meta, Amazon, and Google followed suit with their own GPU purchases. Meta acquired 224,000, Amazon 196,000, and Google 169,000 units. However, these companies are increasingly focusing on developing in-house chips. For example, Google deployed 1.5 million Tensor Processing Units (TPUs), while Meta uses its MTIA chips, and Amazon relies on Trainium and Inferentia chips. Microsoft is also experimenting with its Maia chips, although this initiative remains in its early stages.
The AI Race Heats Up
While Microsoft continues to dominate, the growing investments by ByteDance and Tencent remind us that the AI race is far from one-sided. In fact, these Chinese firms have not only navigated trade restrictions but have also emerged as formidable competitors in the global market. As we look ahead to 2025, it is clear that the AI industry will continue to evolve rapidly, with all eyes on how these global players will shape the next chapter of innovation.
