Tencent has confirmed it possesses enough chips for its operations, regardless of recent shifts in US policy on GPU sales to China. The company has prioritized software improvements to enhance efficiency and remains confident that its current chip supplies will meet future needs. While this situation may hinder revenue prospects for US chipmakers like AMD and Nvidia, Tencent's long-term strategy indicates a potential shift towards alternative chip sources. Additionally, the ongoing depreciation costs from AI investments pose a challenge for maintaining profit margins amidst changing market conditions.
During the company's Q2 earnings call, president Martin Lau stated, "From our own perspective, we do have enough chips for training and continuous upgrade of our existing models." Lau emphasized that Tencent is executing numerous software improvements to drive efficiency in inference, allowing for more workloads with the same number of chips.
The implications of Lau's statements are significant for AMD and Nvidia, as a major client like Tencent not needing to purchase additional chips could adversely impact their revenue ambitions. Furthermore, Lau indicated Tencent could meet future inferencing chip needs from sources outside US chipmakers.
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