Song Chu's questions to Kingsoft Cloud Holdings Ltd (KC) leadership • Q2 2025
Question
Song Chu from Citi asked about Kingsoft Cloud's strategic adjustments to its chip procurement strategy, considering the changing supply status of chips like H20 and B30A, potential security vulnerabilities, and the trend towards embracing domestic chip production.
Answer
CEO Zhou Tao explained that the company has been strategically planning for supply chain uncertainty since 2023. The strategy involves embracing compliant overseas chips while simultaneously monitoring and deepening collaboration with domestic suppliers. Mr. Zhou stated that despite supply chain volatility, there has been no material impact on the company's ability to satisfy demand from its key customers. While current capacity is sufficient, he expressed a conservative long-term view, suggesting a potential supply-demand imbalance if a 'killer app' were to cause an explosive surge in inference demand, which domestic chip supply might struggle to meet.