NVIDIA's dominance in China's AI chip market has significantly declined, with its market share dropping to 55% from a previous 95% due to U.S. export controls and China's domestic substitution policies. According to IDC data, China's AI accelerator card shipments are projected to reach 4 million units in 2025, with domestic manufacturers delivering 1.65 million units, capturing 41% of the market. Huawei leads the domestic charge, shipping 812,000 units and introducing the Atlas 350 accelerator card, which claims superior inference performance compared to NVIDIA's H20. The shift in market dynamics is driven by Beijing's mandate for state-owned data centers to use domestically produced AI chips, alongside escalating U.S. export restrictions. This has spurred domestic manufacturers like Huawei, Alibaba's T-Head, and Baidu's Kunlun芯 to increase their market presence. Despite the technological gap in training capabilities, domestic chips have reached a "good enough" threshold for inference tasks, prompting a transition from NVIDIA solutions. The domestic AI chip sector is also experiencing a surge in IPOs, with companies like Biren Technology and Musen Technology going public, reflecting the sector's rapid growth and strategic importance.