Tencent executives announced on a post-earnings call that the company will significantly increase domestic AI chip usage in the second half of 2026, including Huawei Ascend, Cambricon, and Hygon, to address long-standing GPU shortages that have limited cloud service growth.

The move is part of a broader capex increase focused on AI infrastructure, with a long-term asset‑portfolio approach rather than quarterly earnings pressure.

By mass‑adopting local alternatives, Tencent aims to ease reliance on overseas high‑end GPUs, unlock cloud capacity for external clients, and accelerate maturity of the domestic AI chip supply chain.

ICgoodFind: Tencent’s large‑scale shift to homegrown AI chips signals real demand pull for China’s GPU ecosystem and a major step in import substitution.