China is planning to fast-track the development of a nationwide computing infrastructure to establish a solid digital foundation for artificial intelligence (AI). The Ministry of Industry and Information Technology announced its commitment to bolstering computing power, specifically targeting advancements in generative AI. Beijing sees AI as crucial in the ongoing technological competition with the United States and aims to introduce measures promoting the “high-quality” development of computing networks and large language models, according to Zhao Zhiguo, the MIIT spokesman.

This announcement reflects China’s continuous support for AI technology, which it considers pivotal in determining global economic and political leadership. In a recent move, regulators eased restrictions that were initially proposed for ChatGPT-style services, recognizing the importance of establishing China’s presence in this rapidly growing field.

While specific policies to support AI development have not been disclosed yet, the signs of endorsement have spurred a surge of domestic efforts comparable to the investment frenzy observed in Silicon Valley. China’s major internet companies, including Alibaba, Baidu, and JD.com, along with billionaire entrepreneurs, startups, and academics, are all involved in the race to create an equivalent to OpenAI’s ChatGPT.

Baidu founder Robin Li, who introduced China’s first response to ChatGPT, has previously mentioned that both the US and China possess roughly one-third of the world’s computing power. The MIIT added that this figure has been growing at an annual rate of about 30%, although further details were not provided.

One of the challenges faced by domestic AI endeavors in China is the scarcity of high-end chips from companies like Nvidia, which are essential for training AI models. Due to US restrictions, Chinese companies have been unable to acquire advanced chips, including certain Nvidia products. However, Chinese chip startup Shanghai Biren Intelligent Technology Co. is considered a leading candidate to replace some Nvidia products and is reportedly contemplating an initial public offering in Hong Kong to meet the rising demand from local clients.