A concept picture of AI city File photo: VCG

According to a forecast cited by China Media Group (CMG) on Sunday, China's domestic procurement market for computing cards is expected to reach 1.44 trillion yuan ($212 billion) by 2029.  

This optimistic forecast also reflects growing confidence among investment institutions that surging demand for computing power could drive the emergence of multiple Chinese listed companies with market capitalizations of 1 trillion yuan or even 10 trillion yuan, according to CMG.

"Computing power is becoming a critical factor of production in the digital economy. The computing power network that connects and distributes these resources is emerging as a strategically important part of China's new infrastructure development, providing the foundation for the wider applications of artificial intelligence and other emerging technologies," Tian Feng, former dean of SenseTime's Intelligence Industry Research Institute, told the Global Times in a statement.

This year, investors have accelerated their bets on emerging frontier industries.

Industry experts said that the projection reflects the growing investor confidence in the long-term commercial potential of China's artificial intelligence (AI) industry, as computing power is becoming a foundational infrastructure for AI development and could create opportunities for the emergence of large-scale technology companies across the AI ecosystem.

According to a report by CMG on Sunday, an investment institution specializing in the semiconductor industry chain has invested 250 million yuan in a GPU chip company since its angel round, with its investment return reaching 150 times.

AI start-ups have also remained active in fundraising this year, fueling continued momentum in investment activity.

Industry data showed that Chinese AI start-ups experienced a funding boom in the first half of 2026, with total financing exceeding 300 billion yuan, surpassing the full-year financing volume of 2025 in just six months.

On Friday, one of China's leading AI start-ups, MiniMax, completed a new HK$16 billion ($2 billion) round, according to the STAR Market Daily.

Also, Kimi, an AI assistant developed by another Chinese AI start-up, Moonshot AI, completed the closing of its previous funding round at a valuation of $20 billion and immediately launched a new financing round, with its pre-money valuation rising to $31.5 billion, STAR Market Daily reported on June 30. 

The expanding capital investment in AI companies is aligned with the direction of policy support.

The nation's 2026 Government Work Report highlighted nurturing emerging industries and industries of the future, noted that to nurture industries of the future such as future energy, quantum technology, biomanufacturing, embodied AI, brain-computer interfaces, and 6G technology, mechanisms will be put in place to increase funding and share risks in these fields. 

The integration of policy support, capital investment and technological innovation is accelerating the commercialization of AI technologies, while computing power infrastructure will serve as a key foundation for China's transition toward an AI-driven economy, Tian said.