China Launches Dual AI Alliances to Build Self-Reliant Tech Ecosystem Amid U.S. Chip Sanctions

Major Push Toward Homegrown AI Development Unveiled at Shanghai Conference

China’s artificial intelligence sector is accelerating its push for technological self-sufficiency with the launch of two new industry alliances aimed at fostering collaboration between local chipmakers and AI developers. The announcements come amid growing restrictions from the United States on the export of advanced Nvidia chips to Chinese companies.

AI Ecosystem Alliances Unveiled at WAIC 2025

During the World Artificial Intelligence Conference (WAIC) in Shanghai, two strategic initiatives were introduced:

1. Model-Chip Ecosystem Innovation Alliance
   Led by LLM developer StepFun, this alliance brings together top Chinese AI chipmakers and large language model (LLM) companies including Huawei, Biren, and Moore Threads. Enflame CEO Zhao Lidong described it as a “full tech chain ecosystem” that integrates chips, models, and infrastructure—a move seen as a direct response to U.S. sanctions.

2. Shanghai General Chamber of Commerce AI Committee
   This initiative focuses on industrial integration of AI across sectors. It includes SenseTime, MiniMax, StepFun, and chipmakers like Metax and Iluvatar CoreX. Many of these companies have pivoted away from sanctioned technologies to develop alternatives based on domestic innovation.

Huawei Unveils Chip Cluster to Rival Nvidia

One of the conference’s most significant highlights was the unveiling of Huawei’s CloudMatrix 384, a computing system using 384 of its Ascend 910C chips. Analysts at SemiAnalysis reported it outperforms Nvidia’s GB200 NVL72 in some benchmarks, thanks to advanced system-level design that compensates for individual chip constraints.

Six other Chinese firms showcased similar chip clustering technology, signaling a broader industry move toward large-scale, domestic supercomputing solutions. Metax introduced its AI Supernode with 128 C550 chips, designed for liquid-cooled data centers.

AI-Driven Consumer Tech on Display

Beyond infrastructure, companies introduced consumer-facing AI products:

• Alibaba’s Quark AI Glasses: Equipped with the Qwen AI model, these smart glasses will support navigation, QR payments, and voice commands. They’re expected to launch in China by the end of 2025.

• Tencent’s Hunyuan3D World Model 1.0: An open-source tool that can generate interactive 3D environments from image or text inputs.

• Baidu’s Virtual Livestreamers: The new digital human technology can recreate a person’s voice, gestures, and tone using just 10 minutes of video footage.

FAQs: China’s AI Ecosystem Alliances and Tech Showcase

1. Why did China form new AI alliances?

To reduce reliance on foreign technology, particularly from the U.S., and to build a self-sustaining AI ecosystem that connects local chipmakers with LLM developers.

2. What companies are part of the alliances?

The two alliances include major Chinese firms such as Huawei, SenseTime, StepFun, Biren, Moore Threads, Metax, and Iluvatar CoreX.

3. How does Huawei’s CloudMatrix 384 compare to Nvidia?

Huawei’s system reportedly outperforms Nvidia’s GB200 NVL72 in some tasks due to chip clustering and optimized system architecture, despite U.S. export bans on Nvidia GPUs.

4. What new consumer AI products were announced?

• Alibaba’s smart glasses

• Tencent’s 3D AI world model

• Baidu’s digital livestreamers

5. What is the long-term goal of these developments?

To establish a robust, domestically driven AI infrastructure that allows China to innovate independently, even under ongoing foreign sanctions and export controls.

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