US vs Chinese hyperscalers: ecosystem-building capital vs BoM-squeezing 7% margins
jwt0625 · x · 2026-10-16
A snappy comparison of procurement cultures between US and Chinese hyperscalers:
- US hyperscalers: spot a promising direction, put in money, intro you to their supply chain, and effectively endorse you to your investors by buying your product — a capital-plus-ecosystem play.
- Chinese hyperscalers: demand to see your bill of materials (BoM) and squeeze margins down to just 7%.
The author frames it as two opposite philosophies: US players co-invest to grow the pie, Chinese players ruthlessly optimize cost.
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