Sources: China's SASAC, which oversees state-owned companies, is surveying the number of Broadcom switches in state-backed data centers amid a domestic AI drive (Financial Times)
Survey comes amid drive to boost domestic players and reduce reliance on foreign AI infrastructure
Beijing's ambitious campaign to establish China as a global leader in artificial intelligence technology is proving to be a boon for firms with a global focus. According to a Bloomberg gauge tracking 30 Chinese technology companies with the highest overseas revenue exposure, these firms have experienced a 36% return this year, compared to just 9% for their more locally-oriented peers.
The outperformance of export-oriented companies has reached the strongest reading on record. This contrasting narrative can be attributed to Beijing's efforts to foster its own AI ecosystem, which has led to fierce domestic competition and a price war that has squeezed profit margins in sectors ranging from chips to robotics. Conversely, export-oriented Chinese companies have reaped the benefits of surging global demand for AI infrastructure like data centers.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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