Domestic Tech Strategy Advances at Shanghai AI Summit
China’s artificial intelligence sector is ramping up efforts to develop a self-reliant ecosystem, launching two new industry alliances aimed at mitigating the impact of U.S. export restrictions. The announcements were made during the World Artificial Intelligence Conference in Shanghai, where leading companies unveiled a range of new technologies and collaborations.
At the heart of these moves is a clear goal: reduce dependence on foreign chipmakers such as Nvidia and accelerate innovation through domestic partnerships. The new alliances aim to unify AI chip producers and large language model (LLM) developers into a coordinated framework for technological advancement.
New Alliances Link Chips and LLMs
The first initiative, called the “Model-Chip Ecosystem Innovation Alliance,” was introduced by LLM developer StepFun. It includes key Chinese GPU manufacturers such as Huawei, Biren, Moore Threads, and Enflame — all impacted by U.S. sanctions. This alliance seeks to integrate the entire AI supply chain, from chip design to infrastructure deployment, enhancing resilience and scalability.
The second initiative, organized by the Shanghai General Chamber of Commerce, focuses on the industrial application of AI. Members include SenseTime, MiniMax, Metax, and Iluvatar CoreX, representing both software and hardware developers. These firms are reorienting their businesses toward LLMs and AI-driven solutions after facing geopolitical and regulatory pressures.
Breakthroughs in AI Hardware and Software
Among the highlights of the event was Huawei’s CloudMatrix 384, an AI computing system featuring 384 of its 910C chips. According to U.S. research firm SemiAnalysis, this system surpasses Nvidia’s top-tier GB200 NVL72 on some benchmarks, showcasing China’s growing capabilities in large-scale AI infrastructure.
Other firms like Metax demonstrated similar high-density chip cluster technologies, including a supernode powered by 128 C550 chips designed for liquid-cooled data centers. These advancements aim to close the performance gap with Western technology by leveraging architectural innovations.
AI Applications Move Into Consumer Space
Chinese tech giants also revealed consumer-oriented AI products. Tencent introduced Hunyuan3D World Model 1.0, an open-source tool for generating interactive 3D environments from text or image prompts. Baidu showcased its next-generation digital human, capable of cloning a person’s voice and gestures from just 10 minutes of footage, making it ideal for virtual livestreaming.
Alibaba launched Quark AI Glasses, scheduled for release in China by the end of 2025. The glasses are powered by its Qwen AI model and offer hands-free navigation and mobile payment functionality through voice commands and real-time QR code scanning.
