Beijing authorities have unveiled a new action plan to grow the city’s artificial intelligence (AI) industry beyond one trillion yuan (~$142.5 billion) within two years, as the capital seeks to cement its role as an AI innovation hub. Meanwhile, Nvidia’s (NASDAQ: NVDA) CEO has revealed “skyrocketing” demand for computing due to the global AI boom.
According to a report from state media outlet CGTN, China’s capital city plans to roll out nine major initiatives targeting different sectors of the AI industry, with an emphasis on technological innovation.
Yang Xiuling, director of the Beijing Municipal Commission of Development and Reform, reportedly told CGTN that plans include building a domestically produced AI computing cluster with a capacity of over 100,000 chips, adding more than 10 newly listed AI-related companies, and cultivating over 20 unicorn firms in the sector.
The city’s plan will prioritize technological breakthroughs through coordinated research efforts, including measures to attract top talent, mobilize long-term capital, and support open-source ecosystems.
Yang went on to explain that these measures are designed to accelerate Beijing’s transformation into a globally competitive center for AI innovation.
Beijing has long been regarded as the driving force of China’s AI revolution, with government investment in AI concentrated in the capital and the city home to hundreds of leading institutions that have pioneered research into the technology. According to some reports, Beijing’s AI sector is valued at nearly $50 billion, accounting for half of China’s overall AI exploits.
The city’s AI goals are in keeping with China’s longstanding national priorities. On July 20, 2017, China’s State Council published its “[New] Generation Artificial Intelligence Development Plan,” in which it made clear its ambitions for the country’s to become the global leader in AI by 2030.
This goal was further cemented during China’s 14th Five-Year Plan period (2021-2025), when innovation was placed at the heart of its modernization drive. From 2020 to 2024, the country’s total research and development (R&D) expenditure surged nearly 50%, or 1.2 trillion yuan ($168 billion), and its R&D intensity, the share of a country’s economic output that is spent on R&D, reached 2.68%, up from 2.41% in 2020.
This policy particularly bore fruit for China’s AI sector, which has seen remarkably rapid growth over the past few years. According to data from the China Academy of Information and Communications Technology, the number of AI enterprises exceeded 5,300 as of September 2025, accounting for 15% of the global total, and exceeding 900 billion yuan (about $126.7 billion) in 2024, a year-on-year increase of 24%.
But Beijing’s planned further expansion of its AI capacity is indicative of a broader global trend toward boosting computing power, something recently highlighted by Nvidia’s CEO Jensen Huang.
Demand for computing ‘skyrocketing’
Meanwhile, just as Beijing was revealing its plans to grow the city’s AI industry, the CEO of the world’s leading semiconductor company, Nvidia, told an event in the United States that demand for computing resources is “skyrocketing” due to the rapid advancement of AI models, calling it an “intense race” to the next frontier of the tech.
“Computing has been fundamentally reshaped as a result of accelerated computing, as a result of artificial intelligence,” said Jensen Huang, speaking at the Nvidia live event in Las Vegas. “What that means is some $10 trillion or so of the last decade of computing is now being modernized to this new way of doing computing.”
Highlighting the intense competition in AI, the Nvidia CEO noted that “the amount of computation necessary for AI is skyrocketing. The demand for Nvidia GPUs is skyrocketing. It’s skyrocketing because models are increasing by a factor of 10, an order of magnitude every single year.”
According to Huang, “Every single six months, a new model is emerging, and these models are getting smarter and smarter… Because of that, you could see the number of downloads has exploded.”
With this in mind, he also discussed a number of specific developments for Nvidia in the coming year, including unveiling Rubin, the company’s first extreme-codesigned, six-chip AI platform, which is now in full production.
With Rubin, Nvidia aims to “push AI to the next frontier,” said Huang, who claimed the platform will make large-scale AI far more economical to deploy.
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Source: https://coingeek.com/beijing-targets-trillion-yuan-ai-nvidia-flags-computing-demand/
