Chinese AI Euphoria Obscures a Gloomier Technological Reality
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Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000The AI Race:Moore Threads Technology Co.’s phenomenal debut this month — China’s most successful coming-out party since 2019 — capped a year in which investors have grown increasingly excited about the prospects for the country’s AI chip advancement. That euphoria may be misplaced.From Moore Threads to Cambricon Technologies Corp. and MetaX, the market is celebrating a coterie of once-unknown names that now harbor bold ambitions to take on Nvidia Corp. — at least at home. Major players like Alibaba Group Holding Ltd. and Baidu Inc. are making headway into the semiconductors that underpin AI development — one of Beijing’s top priorities. Recently, Canadian research firm TechInsights took apart a Huawei Technologies Co. smartphone and revealed a processor made using more advanced technologies than Chinese chipmakers were thought capable of. China is even now preparing a package of as much as $70 billion to bankroll and support the sector, people familiar with the matter said.