China Allocates $137.5 Billion for AI Race

The Bank of China will allocate 1 trillion yuan ($137.5 billion) over five years to financially support AI companies, according to a statement from the organization.

The institution aims to “strengthen the foundation” for the artificial intelligence industry. The bank will support the construction of AI computing centers, auxiliary facilities, and infrastructure. Financial safeguards, such as property insurance, will also be provided to enhance enterprises’ risk management capabilities.

A special system has been created to facilitate the integration and modernization of AI technologies and industrial resources. Funding channels on capital markets will be opened for major technology enterprises.

The Bank of China intends to support new areas such as the alliance of artificial intelligence with robotics, economics, biomanufacturing, and other sectors. The institution will assist enterprises in reaching an international level.

Back in January, Donald Trump announced private sector investments of $500 billion in artificial intelligence infrastructure. Experts expressed doubts about the feasibility of such large-scale funding.

Meanwhile, Chinese AI startup DeepSeek introduced a model that is better and cheaper than its American competitors, causing a crash in stock and cryptocurrency markets.