Sunday, January 26th 2025

The Empire Strikes Back: China Prepares One Trillion Yuan AI Plan to Rival $500 Billion US Stargate Project

by
AleksandarK
 Discuss (66 Comments)
A few days ago, we reported on the US reading a massive 500 billion US Dollar package called "Stargate Project" to build AI infrastructure on American soil. However, China is also planning to stay close behind, or even overlap the US in some areas, with a one trillion Yuan "AI Industry Development Action Plan". Translating into around 138 billion US Dollars at the time of writing, the Chinese AI plan is similar to the US Stargate project: develop AI infrastructure through data center expansion and AI accelerator scale-up. Unlike the Stargate project, led by private initiatives and OpenAI at the helm, the Chinese AI Industry Development Action Plan is an entirely state-sponsored initiative that will fund firms like Baidu, ByteDance, Alibaba, and DeepSeek with additional AI accelerators (or sanction-abiding GPUs) to create more advanced AI systems.

Over the past few days, DeepSeek, a branch of a Chinese hedge fund, has not only open-sourced its R1 reasoning model but made it entirely free to use for everyone. This has challenged moat of Western competitors like OpenAI, pushing its CEO Sam Altman to offer an O3-mini reasoning model for up to 100 queries per day for the ChatGPT Plus user tier. Not only did DeepSeek provide a model equally intelligent to OpenAI's best, but it also offered it completely free. This has stirred up the tech community quite a bit and showed that Chinese companies are not much behind Western competitors. With this AI action plan, the Chinese government wants to push its domestic AI makers even further ahead and allow them to overtake cutting-edge model development potentially. Of course, getting GPUs for these projects remains an intricate task, but with export control loopholes and domestic AI accelerator development, the AI arms race is picking up quite a bit.
Source: Ray Wang on X

Related News

Add your own comment

66 Comments on The Empire Strikes Back: China Prepares One Trillion Yuan AI Plan to Rival $500 Billion US Stargate Project

#52
Bomby569
sepheronxYou can throw as much money as you want.

In the end, will it amount to anything? No.

As with like majority of these, the end result will be: project results not what was outlined, timeliness extended to indefinitely, cost overruns, people pocketing, etc.

Always the case. Companies will just stake claim to get a bit part of that pie and not deliver.
these guys make more with a few millions than silicon valley spending billions, not sure that's a fair criticism here
Posted on Reply
#53
TumbleGeorge
Jtuck9I'm sure we could trace a line to their respective outputs that are being compared in this thread.

www.bloodinthemachine.com/p/the-tech-oligarchy-has-been-here

Putin's Tucker Carlson interview springs to mind...And Sam Altman quoting Napoleon, come to think of it...
Hmm yes, but today technologies situation is because political and financial circumstances include cold and hot wars. WW2 was too close and in territory on soviet union and the overwhelming burden of the military action was on their backs, directly.That I mean isn't for discussion here.
Posted on Reply
#54
R0H1T
TumbleGeorgebut today technologies situation is because political and financial circumstances include cold and hot wars.
It's also because people got too addicted to cheap loans and goods and services! You know that $1 shirt you bought? How do you suppose that got made? And now you're addicted, so don't just blame the evil corps or the government or "oligarchs" or whatever :rolleyes:
Posted on Reply
#55
Jtuck9
R0H1TIt's also because people got too addicted to cheap loans and goods and services! You know that $1 shirt you bought? How do you suppose that got made? And now you're addicted, so don't just blame the evil corps or the government or "oligarchs" or whatever :rolleyes:
Tangled hierarchies

At the risk of "derailing" further, I think the whole Covid thing was an interesting insight into this (and how the scientific method works). Peoples pensions funds being tied to a private water company that stops nationalization or the uptake of renewables (Blackrock / fossil fuels).
Posted on Reply
#57
Jtuck9
LeshaSome of you mention fossil fuel, which is a false statement
Oil is not a fossil fuel
I recently learnt about "Choke Points" through Amitav Ghosh
Posted on Reply
#58
Rightness_1
And if NV is really not supplying China with their chips, how can China just make a computer like this?
Posted on Reply
#59
Bomby569
Rightness_1And if NV is really not supplying China with their chips, how can China just make a computer like this?
they just build a better LLM using old nvidia cards, more power doesn't always mean more better
Posted on Reply
#60
TumbleGeorge
Bomby569they just build a better LLM using old nvidia cards, more power doesn't always mean more better
This is the case when natural human intelligence is sufficient for the correct formulations during the initial coding of the LLM and for the selection of the subsequently submitted training information.
Posted on Reply
#61
Bomby569
TumbleGeorgeThis is the case when natural human intelligence is sufficient for the correct formulations during the initial coding of the LLM and for the selection of the subsequently submitted training information.
not sure that can replace computing power, they are just better at coding that's the consensus in the experts. Necessity may also play a part in this, if you have all the power in the world why try to optimise it, if you don't...
Posted on Reply
#63
Bomby569
NellyNvidia falls 12% in premarket trading as China’s DeepSeek triggers global tech sell-off.

www.cnbc.com/2025/01/27/nvidia-falls-10percent-in-premarket-trading-as-chinas-deepseek-triggers-global-tech-sell-off.html
lmao, you didn't need a billion usd or the latest tech to make a good LLM, all these companies were just scamming the investors, it's going to be interesting now
I would love to see Nvidia crash hard

could this be the end of the bubble?
Posted on Reply
#64
SOAREVERSOR
Oh good lord. The power issues are minimal but main of the main "west" countriest are skittish about nuclear power because processed fuel can be turned into weapons. AI produces what it claims to but it's not "AI" it's ML and DL and then shat out out to produce a product. It does exactly that. The point of it isn't to create skynet or the terminator but basically to fire millions if not billions of humans who's IT work or basic admin work is now pointless. The cost of the reactors and more compared to the cost of people is cheap. Don't have 8 figures? Work in IT? You are fucking gone! You have 8 figures, still might be chewed up and shat out.

It's the industrial revolution 2.0 and it's going to do exactly what that one did and wipe out most things and create a few super monopolies and also cost most people their jobs. That's the point. Killinig jobs.

People need to get with it. It's happening one way or the other.
Posted on Reply
#65
Why_Me
SOAREVERSOROh good lord. The power issues are minimal but main of the main "west" countriest are skittish about nuclear power because processed fuel can be turned into weapons. AI produces what it claims to but it's not "AI" it's ML and DL and then shat out out to produce a product. It does exactly that. The point of it isn't to create skynet or the terminator but basically to fire millions if not billions of humans who's IT work or basic admin work is now pointless. The cost of the reactors and more compared to the cost of people is cheap. Don't have 8 figures? Work in IT? You are fucking gone! You have 8 figures, still might be chewed up and shat out.

It's the industrial revolution 2.0 and it's going to do exactly what that one did and wipe out most things and create a few super monopolies and also cost most people their jobs. That's the point. Killinig jobs.

People need to get with it. It's happening one way or the other.
Sounds like those people need to 'learn to code'.
Posted on Reply
#66
SOAREVERSOR
Why_MeSounds like those people need to 'learn to code'.
In theory that is going away as well.

The last time this happened was the .com bubble where a tiny amount made out like bandits and the rest got ruined and billions were put out of jobs and trillions was made. I'm not for or against it but it's happening and oh well.
Posted on Reply
Add your own comment
Feb 26th, 2025 12:48 EST change timezone

Latest GPU Drivers

New Forum Posts

Popular Reviews

Controversial News Posts