Chinese Tech Giants Relocate AI Training Overseas to Access Nvidia Chips: Market Impact Analysis

Chinese technology firms including Alibaba and ByteDance are relocating AI model training operations to Southeast Asian data centers to access Nvidia chips, per the Financial Times report [1]. This trend bypasses U.S. export restrictions on advanced semiconductors (e.g., Nvidia’s H20 chip) imposed in April 2025 [1]. Reddit discussions highlight Nvidia’s irreplaceability over subsidized domestic alternatives, with users noting Chinese firms prioritize Nvidia chips despite government pressure [8]. Domestic chips like Zhonghao Xinying’s “Ghana” claim 1.5x faster performance than A100 but lag newer Blackwell chips and lack proven scalability [9].

Cross-domain connections reveal Nvidia’s ecosystem lock-in (CUDA platform) as a critical barrier to domestic chip adoption [8][9]. The AI boom’s long-term compute demand (per Reddit users) suggests sustained growth beyond short-term bubble concerns [8]. Non-leading Chinese firms are moving training to Southeast Asia due to domestic resource constraints, while leaders like DeepSeek rely on limited domestic/Nvidia chips within China [8].

: Alibaba faces reputational harm from potential U.S. military-linked listing [7]. U.S. may expand restrictions to Southeast Asian data centers used by Chinese firms [7]. FT’s anonymous sources require further validation [1].
: Nvidia benefits from sustained demand despite export controls [4][5]. AI’s indefinite compute growth creates long-term market opportunities [8].

Chinese tech giants are relocating AI training overseas to access Nvidia chips. Nvidia’s dominance stems from performance and ecosystem lock-in. Domestic chips face scalability challenges. Alibaba’s regulatory risks and Nvidia’s demand resilience are critical context points.