China has announced an investment plan of 2,000 trillion yuan, approximately $295 billion, in AI data centers over five years, with the goal of achieving 80% domestic technology by 2028. The « AI+ » initiative targets 70% penetration of AI-enabled terminals by 2027 and 90% by 2030, while Huawei open-sourced its CANN toolkit in August 2025 to directly compete with Nvidia. Since early 2025, Chinese AI models such as DeepSeek and Moonshot AI have caught up with US models on key performance benchmarks. This geopolitical bifurcation strategy in AI infrastructure could reshape the global compute market and fragment the ecosystem into distinct American and Chinese spheres, posing significant risk factors for decentralized compute protocols and AI tokens.
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