Baidu and Huawei combined accounted for more than 70 percent of China's GPU cloud market in the first half of 2025.

As reported by the South China Morning Post and citing a report from analysts Frost & Sullivan, GPU cloud providers are identified as those controlling the full chip-to-cloud value chain.

Baidu topped the list, with 40.4 percent of the Chinese market share, followed by Huawei at 30.1 percent. According to the report, it demonstrates how Chinese companies, which may have previously focused on chip design, are adopting a full-stack approach that encompasses both hardware and software capabilities, aiming to challenge Nvidia's CUDA ecosystem. The remaining market share was not broken down by SCMP.

DCD has contacted Frost & Sullivan for full details.

The report said: “Through systematic innovation, they are integrating thousands or tens of thousands of self-developed chips into a single, massive virtual computing resource pool."

Despite this, Frost & Sullivan said that the Chinese market is still facing some constraints covering “hardware performance, software ecosystems, system integration and commercial operations,” thus, few players have large-scale deployment.

This has been noted in the most recent earnings calls of a few Chinese cloud providers. During November, Tencent said that its capex was falling due to “a change in terms of AI chip availability” and “supply chain constraints sourcing GPUs.”

The company's quarterly capex was just RMB13.0 billion ($1.83bn), down 24 percent Year-on-Year and less than Q2's $2.49bn. The company expects this to further fall in 2026. Alibaba, similarly, said during its earnings call that the company was struggling to deploy servers fast enough to meet AI demand and was having to strategically ration access. Just one month prior, Alibaba claimed it could reduce GPU use by 82 percent with its "pooling" system.

Baidu operates an AI cloud platform dubbed Baige, which is based on chips from its Kunlunxin company. In November 2025, it launched two new AI chips - the Kunlun M100 and M300. According to IDC, Kunlunxin shipped some 70,000 GPUs in 2024.

Last week, Kunlunxin filed for an IPO on the Hong Kong stock exchange, though the size and structure of the offering remain under negotiation. This made the company the latest Chinese chip maker to do so, following Biren, while competitor Enflame filed on the Shanghai Star Market.