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Chinese AI firms form alliances to strengthen domestic ecosystem

Chinese AI companies have formed two new industry alliances to strengthen their domestic technology ecosystem and reduce dependence on foreign technology.

These initiatives were announced during the World Artificial Intelligence Conference in Shanghai, which concluded on July 28, 2025.

The first alliance, named the “Model-Chip Ecosystem Innovation Alliance,” aims to connect developers of large language models (LLMs) with AI chip manufacturers.

Participants include chipmakers Huawei, Biren, Moore Threads, and Enflame, all of which have been affected by US sanctions.

StepFun, a developer of LLMs, introduced this alliance.

The second group, the Shanghai General Chamber of Commerce AI Committee, focuses on integrating AI technology with industrial transformation.

Members include SenseTime, which has shifted its focus to LLMs due to US sanctions, alongside StepFun, MiniMax, and chip manufacturers Metax and Iluvatar CoreX.

The conference also highlighted several technological advancements, such as Huawei’s CloudMatrix 384 system, which incorporates 384 of its 910C chips.

Research by US-based SemiAnalysis indicates that this system surpasses Nvidia’s GB200 NVL72 on certain performance metrics.

Other companies, including Metax, showcased similar technologies, such as its AI supernode equipped with 128 C550 chips for large-scale data centers.

Recent Huawei developments

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