As U.S. export restrictions continue to block China’s access to high-performance AI chips, domestic artificial intelligence companies are joining forces to create a self-sustaining ecosystem. The move was unveiled during the World Artificial Intelligence Conference (WAIC) 2025 in China, where two major industry alliances were announced, and a wave of homegrown AI technologies took center stage.
Strategic alliances formed to counter chip restrictions
At the forefront of China’s effort is the newly launched “Model-Chip Ecosystem Innovation Alliance.” This coalition aims to bridge the gap between developers of large language models (LLMs) and manufacturers of graphics processing units (GPUs). Members include Enflame, Huawei, Biren, and Moore Threads—all previously impacted by U.S. sanctions. The alliance intends to create a cohesive tech pipeline from chips to models to infrastructure, ensuring local alternatives to U.S.-built technologies.
A second initiative—the Shanghai General Chamber of Commerce AI Committee—focuses on accelerating AI adoption across industries. Participants like SenseTime, StepFun, MiniMax, Metax, and Iluvatar CoreX will collaborate to integrate AI solutions into real-world use cases, reflecting China’s broader pivot from surveillance to innovation-driven growth.
Huawei’s AI chip cluster challenges Nvidia’s dominance
A key highlight of WAIC was Huawei’s unveiling of the CloudMatrix 384 system, powered by 384 of its 910C AI chips. The system, according to U.S. research firm SemiAnalysis, outperforms Nvidia’s GB200 NVL72 in certain performance metrics by leveraging advanced system-level design rather than relying solely on chip strength. Several other Chinese firms demonstrated similar chip “clustering” capabilities, reinforcing the push for competitive domestic alternatives.
Metax, another major player, introduced an AI supernode with 128 C550 chips, tailored for next-gen liquid-cooled data centers—a growing requirement for large-scale AI operations.
AI wearables, avatars, and open-source 3D models take spotlight
Beyond infrastructure, consumer-facing innovations also featured prominently. Tencent launched Hunyuan3D World Model 1.0, an open-source system enabling users to generate interactive 3D environments using text or image inputs. Baidu introduced a “digital human” tool that uses cloning technology to mimic human voice, tone, and gestures with just 10 minutes of sample data. Meanwhile, Alibaba announced its Quark AI Glasses, which integrate Qwen AI to support navigation and QR code-based payments via voice.
These developments mark a strategic shift as Chinese firms accelerate efforts to reduce reliance on foreign technologies and reshape their AI future from within.
