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Artificial intelligence (AI) is the new currency of global power, and China is amassing it at scale. In 2017, China declared its ambition to become the world’s leading AI power by 2030 and has pumped in billions, spurring domestic innovation. Between the state and the private sector, the country is projected to spend nearly $100 billion (€85.76 billion) on AI in 2025 alone. So far this year, China has stunned the global tech community with the rise of DeepSeek, a startup whose large language model (LLM) rivals top Western brands like ChatGPT and Grok. DeepSeek delivers mostly comparable performance at a fraction of the cost and computing power. E-commerce giant Alibaba, meanwhile, has launched a powerful new AI model and announced plans to build more data centers around the world, showing that China’s biggest tech firms are serious about challenging US AI dominance. Tencent added fuel to the race this year with its release of Hunyuan-A13B, an AI model designed to be faster, smarter and open to developers.