Alibaba and Tencent increase AI spending amid chip shortages
The post Alibaba and Tencent increase AI spending amid chip shortages appeared on BitcoinEthereumNews.com. 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 to replace limited supplies of American semiconductors. Alibaba’s latest quarterly results showed a major shift in focus. For the three months ending in March 2026, the company reported very low profit. Although revenue increased slightly, Alibaba shifted spending from its main businesses to newer areas such as rapid delivery services and technology development. Profit dropped sharply, with non-GAAP net income falling from 29.847 billion yuan to just 86 million yuan. Eddie Wu Yongming