China touts AI milestone: models generate more tokens than used in training
For the first time, the amount of inference data generated by artificial intelligence systems in China has surpassed the amount of data used to train those systems, according to a new government-backed report, illustrating how the country is increasingly adopting AI at scale. The report released on Saturday by the China Centre for Information Industry Development (CCID), which operates under…
China's AI industry has reached a significant milestone, with the country's use of artificial intelligence systems generating more token calls than the amount of data utilized in training those models for the first time, according to a government-backed report. The China Centre for Information Industry Development (CCID), under China’s Ministry of Industry and Information Technology (MIIT), reported that daily token calls hit an average of 175 trillion in June, a dramatic increase of over 1,000 times from early 2024.
Token calls represent the process of running trained AI models to handle user requests, which involves processing units of data known as tokens. The report did not provide details on the amount of data used for training AI systems in China, but a separate report by the China Academy of Information and Communications Technology estimated an average daily token consumption of around 500 trillion tokens, including usage through private cloud deployments.
Experts predict that demand for computing power to offer AI inference could grow threefold the current training needs. China's National Data Administration noted this potential surge in AI inference demand. Beijing has highlighted tokens' significance in the AI era, introducing terms like "token economy" in policy language. Local governments, including Beijing, are planning policies to promote token consumption through token factories and distribution platforms.
This milestone reflects China's increasing reliance on AI across industries, with the country's technology firms heavily investing in AI infrastructure. For instance, capital expenditure on AI infrastructure among 13 major Chinese companies is expected to more than double to 932 billion yuan this year and surpass 1.2 trillion yuan in 2027.
Companies like Alibaba and Tencent have experienced financial strains due to the heavy investments in AI infrastructure, with Alibaba and Tencent reporting a combined negative 16 billion yuan in free cash flow during the first half of 2026.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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