Chinese AI Firms Forge Alliances to Build Domestic Ecosystem Amid US Restrictions
Chinese AI firms form alliances to enhance domestic capabilities in response to US export restrictions.
Key Points
- • Chinese AI companies form new alliances to create a domestic ecosystem due to US export restrictions.
- • The alliances were announced during the World Artificial Intelligence Conference in Shanghai.
- • Huawei's new AI computing system competes with Nvidia's offerings, showcasing advanced technology during the conference.
- • Other significant announcements included Tencent's interactive 3D model generation technology and Baidu's digital human technology.
In a significant move reflecting the current geopolitical climate, Chinese artificial intelligence companies have established two new alliances aimed at building a self-sufficient AI ecosystem in response to U.S. export restrictions on advanced technologies. These alliances were publicly announced during the World Artificial Intelligence Conference in Shanghai, which concluded on July 28, 2025.
The first coalition, named the 'Model-Chip Ecosystem Innovation Alliance,' brings together developers of large language models (LLMs) and AI chip manufacturers, notably including Huawei, Biren, and Moore Threads. This initiative is designed to fortify the entire technology supply chain, connecting chips, AI models, and infrastructure without reliance on foreign technology. Zhao Lidong, CEO of Enflame, one of the participating chipmakers, expressed that the alliance represents an innovative ecosystem that integrates the complete technology chain.
The second alliance, initiated by the Shanghai General Chamber of Commerce AI Committee, focuses on merging AI technology with industrial transformation. This coalition features significant participants such as SenseTime and StepFun, indicating a broader commitment to advance AI's integration into various sectors.
During the conference, Huawei showcased its latest AI computing system, CloudMatrix 384, which reportedly outperforms Nvidia's offerings in certain metrics, according to SemiAnalysis, a U.S. research firm. This new system utilizes 384 of Huawei’s latest 910C chips, showcasing the company's technological prowess despite international sanctions.
Other notable announcements included Tencent's release of its Hunyuan3D World Model 1.0, which allows users to create interactive 3D environments, and Baidu's introduction of next-generation digital human technology that accurately mimics human gestures and voice from short videos. Additionally, Alibaba unveiled its Quark AI Glasses, scheduled for release in China by the end of 2025, leveraging its proprietary Qwen AI model.
Overall, these developments underscore a significant shift within China's AI landscape, as local companies accelerate efforts to reduce dependence on external technology in light of ongoing U.S. export curbs.