Baidu and Huawei Dominate China’s Booming GPU Cloud Market
In the ever-expanding world of artificial intelligence (AI) and technology, Baidu and Huawei continue to solidify their positions as the leaders in China’s GPU cloud market. According to Frost & Sullivan’s recent report, these tech giants collectively held a staggering 70.5% market share in the first half of 2025, demonstrating China’s growing advancements in AI capabilities and self-reliance.
The Strategic Advantage: Proprietary GPUs and Full-Stack Solutions
Baidu, at the forefront, leads the market with a 40.4% share. This dominance is largely attributed to their proprietary Baige AI platform and Kunlunxin chips, which saw a shipment of 70,000 units in 2024. Additionally, Baidu’s self-developed AI accelerators, such as the Kunlunxin M100 and M300, enhance large-model training and inference performance. These innovations integrate thousands of proprietary chips into massive computing clusters, making Baidu a critical player in China’s AI infrastructure.
Huawei follows closely with 30.1% of the market, leveraging its own vertical integration approach. From designing powerful AI chips to providing robust cloud services, Huawei delivers end-to-end solutions that cater to the computational demands of AI workloads. Their investments underscore China’s strategic vision of reducing reliance on foreign technology while fostering homegrown innovation.
How Domestic AI Chipmakers Are Fueling Growth
Apart from Baidu and Huawei, other Chinese AI chipmakers such as Biren, Moore Threads, MetaX, and Enflame are aggressively pushing toward their respective IPO milestones, aligning with the nation’s technological self-sufficiency campaign. Shanghai-based Biren Technology, for instance, successfully raised $720 million during its recent IPO in Hong Kong. These milestones reflect a broader trend of robust activity within China’s tech and semiconductor sectors.
Key Challenges & Strategic Outlook
Despite the impressive strides, challenges remain. Frost & Sullivan highlights hurdles in system integration, hardware performance, and the development of comprehensive software ecosystems. As local players work to address these issues, it’s clear that domestic GPUs are no longer just “strategic backups” but are rapidly emerging as “core pillars” in China’s AI industry.
One of the standout players, Baidu’s Kunlunxin, underscores this trend by planning a confidential Hong Kong IPO for its AI chip subsidiary. With products like the M100 optimized for mixture-of-expert models and the M300 designed for large multimodal models, Baidu is cementing its leadership in the global AI ecosystem.
Need Powerful Cloud AI Support?
As industries increasingly rely on AI-powered cloud solutions, brands like Huawei Cloud AI offer enterprise-grade services for businesses seeking cutting-edge solutions. Their integrated ecosystem ensures seamless performance for large-scale computational tasks.
The Road Ahead
Innovation continues to drive competition in the Chinese GPU cloud market. With Baidu and Huawei setting benchmarks and emerging firms like Biren and Enflame making significant waves, the future of AI in China is poised for unprecedented growth.
