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first_img The State-owned Assets Supervision and Administration Commission investigates the usage of Broadcom switches in state-owned enterprise data centers

According to the Financial Times, Chinese authorities are reviewing the use of Broadcom hardware by state-owned data centers to support domestic manufacturers and reduce reliance on foreign artificial intelligence infrastructure. The State-owned Assets Supervision and Administration Commission has been investigating how many Broadcom switches are used by state-controlled data centers in recent weeks, according to two informed sources.One of them stated that the penetration rate of Broadcom switches in state-owned enterprises could be as high as 90%, and preliminary results may lead the commission to issue informal guidance to reduce the use of Broadcom switches in domestic data centers. The sources indicated that state-owned data centers are no longer allowed to use NVIDIA products but still use a large number of Broadcom switches. The commission is also investigating whether Broadcom is leveraging its market-leading position to bundle other products or requiring one-time purchases of tens of thousands of switch chips.The sources noted that these practices have restricted Chinese companies like H3C and Ruijie Networks from placing orders with other switch manufacturers such as Huawei. H3C and Ruijie Networks are often included in the procurement recommendation lists for government agencies, public institutions, and state-owned enterprises, which spend billions of dollars annually on information technology products.

first_img Oracle's American cloud infrastructure division laid off 546 people

According to Business Insider, Oracle launched its second round of layoffs this year last week. A leaked document shows that 546 employees from its U.S. cloud infrastructure organization were laid off, accounting for about 7.6% of the listed 7,185 employees. The most affected positions include managers, engineers, software developers, and employees in the data center maintenance and service departments. The document states that the information was provided to comply with federal age discrimination laws. Oracle did not disclose the total number of layoffs last week and did not respond to requests for comment.Oracle previously revealed that it expects to reduce its workforce by 21,000 employees, a decrease of 13%, by May 31, 2026, with the total number of employees before the recent layoffs being 141,000. The cloud infrastructure department's revenue grew by 121% year-over-year in the most recent quarter. The document indicates that 57 software developer III positions were cut, with software development-related positions accounting for about 17% of the layoffs; the data center support services department laid off 41 people, including the department's vice president and two senior directors.A total of 128 positions containing the word "manager" were eliminated, accounting for about 23% of the layoffs, with project managers totaling 61 people. Most affected employees are over 40 years old, with about 16% being 60 years or older. Oracle is increasing its investment in AI data centers, expecting related expenditures to be between $90 billion and $95 billion this year.

Tencent IEG restructures its AI gaming division, aiming to explore AI-native games

Tencent Interactive Entertainment Group (IEG) is integrating ARC Lab and the Game AI Engine Department to establish a new AI gaming department (tentatively named ARC Lab), led by Chen Dong, the head of Tencent Games Public Technology. The aim is to explore AI-native games. The department currently has about 100 people, with plans to expand to 400 to 500, and is actively recruiting on a large scale for top multimodal generation teams, covering areas such as audio and video foundational models, video world models, Agents, etc.According to informed sources, the early formation model of the department references the talent and data supply chain paths of Seedance and Keling, focusing on exploring the possibility of directly generating games from video models. Tencent IEG has a cash flow of 130.1 billion yuan in game revenue for the first half of the year and approximately 10,000 H card computing power reserves, as well as exclusive game data that cannot be accessed by the mixed Yuan large model. Currently, Tencent's AI game development is showing a parallel multi-system situation: TEG provides basic capabilities, the IEG middle platform integrates tools, and the four major studios are advancing independently, with no unified standards yet. The specific organizational structure is still being refined, and the final plan will be subject to official announcement.
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