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China’s artificial intelligence (AI) race is no longer just about building bigger data centers. It is increasingly about deciding who gets to fill them. As Beijing doubles down on technological self-reliance, Chinese enterprises are shifting more of their AI infrastructure spending toward homegrown chipmakers, reshaping one of the world’s largest semiconductor markets in the process. For companies that once viewed China as a major growth opportunity, the changing landscape is becoming far more challenging.
Fresh data from a Bloomberg survey underscores just how quickly that transition is unfolding. Among 60 executives across China’s software, finance, manufacturing, and retail sectors, respondents said they expect domestic AI chips to account for 46% of their AI hardware budgets over the next 12 months, up sharply from roughly 30% today. Meanwhile, nearly 80% reported that AI infrastructure projects are already running over budget, prompting companies to prioritize readily available local alternatives over imported hardware.
