Nvidia Ships 2.2M AI Accelerators as Chinese Rivals Seize 41% of Market
Nvidia shipped over 2.2 million AI accelerator cards in China in 2025 while local manufacturers captured roughly 41% of the market by delivering about 1.65 million units. Intensifying competition from Huawei, Alibaba’s T-Head and Baidu’s Kunlunxin under U.S. export restrictions is narrowing Nvidia’s market lead.
1. Market Share Shift in China
In 2025 Chinese chipmakers secured approximately 41% of the AI accelerator server market by shipping about 1.65 million units, compared with Nvidia’s 2.2 million cards. This marked the smallest gap in recent years between Nvidia and domestic competitors.
2. Drivers of Domestic Growth
Local players benefited from favorable government policies and innovated around U.S. export restrictions, which limit access to Nvidia’s most advanced devices. Huawei led the domestic pack, followed by Alibaba’s T-Head and Baidu’s Kunlunxin, all capturing market attention with homegrown designs.
3. Nvidia’s Competitive Outlook
Despite losing ground, Nvidia remains the leading supplier in China with strong demand for its GPUs in cloud and AI data centers. The evolving landscape is more crowded and politically sensitive, posing new challenges for Nvidia’s pricing power and long-term growth in its largest frontier market.