Competition in China's AI sector heightens, featuring advancements in human-like robots and substantial financial incentives worth several billion yuan
China is making significant strides in the artificial intelligence (AI) sector, with several cities vying to become global leaders. Each city is leveraging unique strengths to drive innovation and development in this rapidly growing field.
The AI Race: Key Players
Beijing
Known as "China's AI capital," Beijing boasts a strong academic foundation, with leading universities and research institutes such as the Beijing Academy of Artificial Intelligence and Zhongguancun Science Park. The city's ecosystem for tech innovation is well-established, with over 2,400 registered AI companies. Beijing also leads in AI investments, benefiting from a combination of government support and private funding.
Shanghai
Shanghai, as a major financial center, supports AI development by offering a complete end-to-end industrial ecosystem. The city is expanding its AI computing capacity, targeting five new data centers by 2025, aiming to exceed 100 exaflops. Shanghai has also implemented policies to boost the adoption of domestic computing chips, enhancing self-sufficiency in AI technology.
Guizhou
Guizhou has quickly established itself as a leader in computing power, reaching 85 exaflops, making it a significant player in AI data centers. Its strategic investments and natural advantages have positioned Guizhou as an emerging AI data center powerhouse.
Other Regions
Places like Inner Mongolia and Guangdong are also investing heavily in data centers, contributing to China's broader strategy to enhance AI capabilities.
The AI Race: Beyond the Capitals
Hangzhou, known for its tech start-up scene, houses firms like DeepSeek and Game Science, the developers of the hit video game Black Myth: Wukong. The city invests heavily in AI development and is a key player in China's AI race.
Shenzhen, another vibrant tech hub, is at the forefront of China's AI race. Robot taxis and driverless cars weave in and out of traffic, while drones pick up and drop off orders such as food and medicine. The city hosts the annual World AI Conference (WAIC) and provides 1 billion yuan in subsidies to help local firms and start-ups adopt AI solutions.
Navigating the AI Race
Overinvestment without a clear, long-term strategy is cautioned against, according to Benjamin Cheong, deputy head of technology, media, and telecommunications at law firm Rajah & Tann. He emphasizes the importance of knowing one's strengths in the AI race. Success in the AI race depends on leveraging unique strengths, according to analysts. Competition among cities in China for AI dominance is fierce.
However, blindly copying other cities could backfire, even in a lucrative sector like AI, analysts warn. Each city must find its niche and build on its strengths to stand out in the global AI race.
Across China, local governments are rolling out ambitious plans to position themselves as AI leaders. As the race continues, it remains to be seen which city will emerge as the global leader in AI.
Technology advances at an unprecedented pace in Shanghai's AI-focused industrial ecosystem, with plans to boost computing capacity and domestic chip adoption.
Artificial-intelligence research and development are underway in various cities across China, each tapping into unique strengths to distinguish themselves in the fierce competition on the global stage.
