China prepares $295 billion plan to boost AI, according to Bloomberg

According to those sources, bodies such as the National Development and Reform Commission (NDRC), the country’s main economic planning body, are developing a strategy to create an interconnected network of computing centers that would be operated mainly by state-owned companies such as China Mobile and China Telecom.

The goal is for at least 80% of the technology used, including AI chips, to come from domestic suppliers such as Huawei, thereby reducing dependence on US manufacturers such as Nvidia and AMD.

The investment, estimated at around two trillion yuan ($295 billion, €255 billion), would be financed mainly through sovereign debt, including special very long-term bonds, as well as state funds allocated to strategic sectors, complemented by bank loans and private capital.

The project, still in a preliminary phase and subject to change, would be part of the ‘Six Networks’ program announced this year by Beijing, a strategy to reinforce infrastructure considered key to future growth, including computing, communications, energy and logistics.

Within this scheme, the so-called “computing network” seeks to integrate computing resources dispersed throughout the country to facilitate the development of AI models and applications.

The same sources indicated that the authorities are also studying integrating the electrical grid with this initiative, which would raise the total planned investment to at least five trillion yuan (737 billion dollars, 638 billion euros).

The information comes at a time of strong competition between China and the United States for leadership in AI and increasing US restrictions on the export of advanced semiconductors to the Asian giant.

In its new five-year plan for 2026-2030, Beijing had already placed AI and data infrastructure among the priorities for the country’s economic modernization.

Likewise, large Chinese technology companies have accelerated their investments in this area: ByteDance is studying allocating up to $70 billion to AI, while DeepSeek is finalizing a financing round valued at about $7.4 billion, as recently reported by the same media.

The commitment to strengthening national computing capacity also coincides with Washington’s growing pressure on the Chinese technology sector, including the expansion of restrictions on the export of advanced chips and measures aimed at limiting Beijing’s access to technologies considered strategic.