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China's data center boom, mirroring its EV overproduction, has led to massive idle capacity amid AI ambitions and US sanctions. Authorities plan to flood the market with discounted compute power via a national network to boost utilization. However, latency, hardware issues, and regulations pose challenges, potentially distorting global markets and sparking trade tensions.
Cloud costs can quickly spiral when finance teams lack real-time visibility into engineering spend. Join the free virtual FinOps Excellence Summit, hosted by Harness on July 16th, to learn how leading companies like United Airlines are successfully embedding cost controls into their software delivery pipelines.
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In 2025, China's AI sector shifts from costly foundational models to revenue-focused applications in manufacturing and healthcare, led by firms like SenseTime and Zhipu AI amid government support and approvals. Despite U.S. restrictions, the market eyes $206.6 billion by 2030, signaling sustainable growth through monetization.
The US-China AI rivalry is intensifying, with China investing in domestic chips, subsidies, open-source models, and global standards to achieve self-reliance amid US export controls. The US counters with deregulation, alliances, and restrictions. This high-stakes battle risks an AI arms race, threatening global security and innovation.
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Chinese AI firms, including Huawei, Baidu, and SenseTime, formed two alliances on July 28, 2025, to build a self-reliant ecosystem amid U.S. chip export curbs. These coalitions aim to develop domestic hardware, software, and standards, fostering innovation. This strategic pivot could reshape global AI dynamics by 2030.
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