China News Service's second quarter financial report meeting stated that existing chip resources are sufficient to support AI model training and upgrades, and there is no need to worry about the impact of the US export of China's chip ban.

At present, the chip restrictions in the United States and China are still full of uncertainties, prompting many Chinese companies to adopt causal measures. During financial conferences, the telecommunications management layer claims to have multiple recommended chip options and simultaneously promote software layer optimization to develop more chip computing efficiency and work loading capabilities.

In terms of cloud business, Tsing has transformed the overall operating structure into a more sustainable model, and the supply chain cost competition has also increased. The management layer said that the company no longer relies too much on short-term fluctuations in GPU supply at this stage, but instead focuses on growing the growth of the production and continues to expand in basic facilities such as CPU, database, storage, and CDN. If the GPU supply returns to stability, the proportion of cloud rental will be simultaneously increased to maintain a flexible deployment strategy.

Ten continues to strengthen AI investment, with capital expenditure reaching RMB 19.11 billion (about NT$79.8 billion), an annual increase of 119%. According to Chinese media reports, this capital expenditure covers basic facility construction, data center expansion, land use rights acquisition, as well as AI software platforms and computing power infrastructure construction, etc.

Capital expenditure for this quarter was reduced by about 30% compared with the previous quarter's RMB 27.5 billion (about NT$11.48 billion), due to the reasons that may be related to the previous pre-reserved stock of NVIDIA H20 due to the US ban on the sale of NVIDIA H20, which has now left relatively sufficient chip stock. Therefore, in the face of uncertainty in export restrictions, the news has shown a higher adaptability and flexibility.

It is worth noting that although the information indicates that the existing resources are sufficient, it is not ruled out that the possibility of seeking to obtain chips in the future when special circumstances arise. If the company has a deeper and farther plan for long-term development, it is necessary to invest in more hardware.

Tencent doesn’t care if it can buy American GPUs again – it already has all the chips it needs