Chinese Internet Companies Increase AI Spending, Boosting Local Tech Industry
Chinese internet companies are significantly increasing their investment in artificial intelligence (AI) technologies, driven by a surge in demand for computing power. Alibaba, a major player in the sector, reported a 34% increase in cloud-related revenue, highlighting the growing need for AI infrastructure. This trend is expected to benefit domestic tech companies, particularly those involved in AI-related equipment and semiconductor production. Companies like Cambricon and Moore Threads are poised to capitalize on this demand, with Cambricon planning to triple its output to meet the growing needs. The U.S. restrictions on advanced semiconductor sales to China have prompted Chinese firms to seek local alternatives, further boosting the domestic tech industry. 
