Tencent's ability to acquire American GPUs isn't a concern for them, as they already have an adequate supply of chips.
Tencent Unfazed by Resumption of GPU Sales to China by Nvidia and AMD
In a recent development, Tencent, the Chinese tech giant, has expressed no concern over the potential resumption of GPU sales to China by Nvidia and AMD. This is because the company already has a sufficient stockpile of American GPUs for training and upgrading its AI models, and has developed alternatives for inference chips from non-US suppliers.
Speaking at a press conference, Tencent's president, Martin Lau, confirmed that the company is executing software optimizations to maximize chip usage, which lessens its urgency to purchase newly available GPUs from Nvidia and AMD when restrictions ease.
Tencent's strategy for alternatives includes adopting AI inference chips from vendors other than Nvidia and AMD, and investing in software improvements to boost inference efficiency and lower dependence on raw hardware performance. This approach aligns with a broader trend in China, where key tech companies and government agencies are pushing for domestic AI chip self-sufficiency.
The Chinese authorities actively encourage the use of domestic chips in public sector applications, aiming to reduce dependence on US chips due to export restrictions and geopolitical tensions. Tencent's emphasis on software-based efficiency gains is a strategic move that enables the company to weather US export controls and shifting GPU availability without major disruption.
Despite the ongoing discussions about import situations between governments, Tencent remains in fine financial health. The company's Q2 net profit grew 11% to RMB 64.8 billion ($9 billion), and Q2 revenue reached RMB184.5 billion ($25.7 billion), showing a 15% year-over-year growth. The average monthly users of Tencent's Weixin and WeChat social networks increased to 1.411 billion, with an annual growth of 40 million or 3%.
Tencent's president also stated that the company's public cloud business is pursuing opportunities independent of the GPU supply situation. The company is growing in the CPU and database sectors, apart from public cloud, further diversifying its technology portfolio.
In conclusion, Tencent's indifference to the resumption of GPU sales to China by Nvidia and AMD is a testament to its current chip inventory sufficiency and its diversified approach to inference hardware. The company's strategic investment in software-based efficiency gains positions it well to navigate the ever-changing geopolitical landscape and continue its growth trajectory.
- Tencent's president, Martin Lau, announced that the company is optimizing its software to boost chip usage, which indicates a shift towards data-and-cloud-computing technology and AI, reducing the need for new GPUs from Nvidia and AMD.
- In addition to AI inference chips from non-US suppliers, Tencent is investing in software improvements to enhance inference efficiency and lower dependence on raw hardware performance, signifying a move towards cloud-based gaming and AI solutions.
- The growth and success of Tencent's public cloud business demonstrate the company's commitment to diversification in data-and-cloud-computing and software technology, ensuring growth and resilience in a rapidly changing tech landscape.
