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Alibaba and Tencent split paths as U.S. chip approvals test China’s AI strategy
May 14, 2026
< 1 min read
by Hania Humayun
for CryptoPolitan
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AI Overview
Alibaba and Tencent said on recent earnings calls they will sharply increase AI infrastructure spending and rely on China-made chips from Huawei and other domestic manufacturers to ease prior supply constraints. Greater local chip availability and expanded data center capacity could accelerate crypto and blockchain adoption in China by supporting AI-driven DeFi services, on-chain analytics, cloud-based CEX/DEX infrastructure and token launches while improving security and reducing dependence on foreign hardware.
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China’s two largest tech companies are spending substantially in AI infrastructure, anticipating that domestically produced chips will alleviate their supply problems. Alibaba Group Holding and Tencent Holdings said during recent earnings calls that they will sharply increase infrastructure spending. The companies are relying on chips made in China by Huawei Technologies and other local manufacturers...
