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China is betting big on AI self-reliance with an $11B push to build a Nvidia-free ecosystem in Beijing’s Yizhuang zone. From homegrown chips to robot races, this is China’s most ambitious move yet in the global AI race—rewriting rules under U.S. sanctions and geopolitical strain.
In the relentless race for AI supremacy, China is not just keeping pace—it’s rewriting the rules. As the CNC editorial room at Cyber News Centre constantly monitors AI developments, today we bring you a grassroots approach to China’s rise in AI.
Beijing’s bold move to pour tens of millions of dollars into fostering a Nvidia-free AI ecosystem in the Yizhuang Development Zone is nothing short of revolutionary. This is not merely a response to U.S. sanctions; it’s a declaration that China’s AI ambitions are entering a transformative stage, redefining global tech dynamics.
The Yizhuang Development Zone, or Beijing E-Town, announced on Wednesday its audacious plan to build a nationally leading AI industry ecosystem, valued at 80 billion yuan (US$11 billion) by year’s end, according to its official WeChat account. This state-backed hub is leveraging hefty subsidies to nurture a supply chain rooted entirely in domestic technologies. From chip design to AI model training, Yizhuang is positioning itself as the epicenter of China’s technological self-reliance drive—a direct challenge to Nvidia’s dominance and a testament to Beijing’s resolve.
The AI race is in its revolution stage, and Yizhuang is ground zero. Huawei’s Ascend series chips, designed to rival Nvidia’s GPUs, are undergoing rigorous testing to power China’s AI infrastructure. Meanwhile, the zone’s data centers are being optimized for these homegrown solutions, sidestepping U.S. export controls that have throttled access to Nvidia’s H20 chips. This isn’t just about survival; it’s about outmaneuvering. Events like April 2025’s humanoid robot half-marathon in Yizhuang—where bipedal robots showcased China’s AI-driven automation—signal a future where Chinese tech doesn’t just compete but leads.
Yet, the revolution comes with growing pains. China’s AI infrastructure, while ambitious, grapples with overbuilt data centers and plummeting GPU rental prices (Nvidia H100 servers have crashed from 180,000 to 75,000 yuan per month). This reflects a speculative frenzy that outpaced demand, leaving some facilities idle.
Domestic chips, though promising, still trail Nvidia’s in performance for certain tasks, and U.S. sanctions continue to squeeze access to cutting-edge tech. Beijing’s recent mineral discoveries in Xinjiang and Henan bolster its semiconductor supply chain, but global interdependence limits full decoupling.
Remarkably, despite these challenges and geopolitical tensions, Nvidia has significantly increased its participation and revenue in China. Nvidia’s revenue in China reached an impressive 80.6 billion yuan (approximately US$11 billion) in 2023, reflecting a significant increase despite escalating export controls. This growth continued into subsequent years, with revenues jumping to $10.3 billion in FY2024, marking an 84% year-over-year rise.
By FY2025, Nvidia's China revenue soared again to $17.1 billion, representing another 66% year-over-year increase, maintaining around 14% of Nvidia’s total global sales. This sustained revenue growth underscores China's crucial role as a major market for Nvidia, even as geopolitical frictions and regulatory pressures intensify.
Geopolitical complexities further complicate matters. Nvidia CEO Jensen Huang recently underscored China's strategic significance, predicting its AI market could hit $50 billion within the next two to three years. Huang cautioned that exclusion from China could significantly harm U.S. job creation, tax revenues, and Nvidia's financial health.
Across Asia, the AI revolution is reshaping alliances and rivalries. South Korea and Japan, collaborating with U.S. firms, contrast with China’s insular approach, while trade tensions—exacerbated by Trump’s tariffs and China’s mineral export restrictions—add complexity. Yizhuang’s vision, while inspiring, faces a reality where technical gaps and economic pressures could temper its ascent.
Still, count China out at your peril. Yizhuang’s Nvidia-free ecosystem is a bold bet on self-reliance, backed by billions and fueled by necessity. As the CNC editorial room tracks this unfolding saga, one thing is clear: the AI race is no longer a sprint—it’s a revolution, and China is writing its own chapter. Whether Yizhuang achieves its 80-billion-yuan dream by December 2025 will depend on execution, but its ambition alone is reshaping the global tech landscape.
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