Chinese cloud giants Tencent, Baidu, and Alibaba are signaling price increases for cloud services, driven by AI-related supply chain pressures. Tencent's president noted a 'better pricing environment' as hardware suppliers prioritize hyperscalers over smaller cloud providers, effectively squeezing out smaller competitors. Baidu Cloud announced 5–30% price hikes on AI services and ~30% on parallel file storage. Tencent Cloud reported $725 million in adjusted operating profit for Q4 2025, with full-year revenue topping $109 billion (14% YoY growth). Tencent also noted that cheaper inferencing chips from Chinese suppliers may ease cost pressures as LLM inference workloads grow.
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