Chinese AI Leaders Form Alliances to Strengthen Domestic Supply Chain

Chinese AI firms formed the “Model-Chip Ecosystem Innovation Alliance” and the Shanghai General Chamber of Commerce AI Committee to link chipmakers, model developers and infrastructure providers. The alliances aim to create a self-sufficient AI industry domestically.

Major Chinese technology companies, including Huawei, Biren, Moore Threads, SenseTime, Enflame and StepFun, unveiled the alliances during the three-day conference, which concluded on July 28, 2025. The Model-Chip Alliance connects Chinese developers of large language models with domestic GPU manufacturers affected by U.S. sanctions.

The alliances integrate the AI value chain from chip production to model deployment and promote the industrial adoption of AI technologies. Participants seek to create a complete local supply chain for AI hardware and software.

Huawei showcased its CloudMatrix 384 AI computing system, incorporating 384 of its in-house 910C chips. Other participants in the Model-Chip Ecosystem Innovation Alliance include Biren and Moore Threads, while the Shanghai General Chamber of Commerce AI Committee includes SenseTime, MiniMax, Metax and Iluvatar CoreX.

Since 2022, the U.S. has imposed export restrictions on advanced AI chips and related technologies. The restrictions bar Chinese chipmakers from acquiring advanced chip technology dependent on American intellectual property.

At least six other domestic computing firms demonstrated clustering and liquid-cooling innovations at the conference. Chinese firms have accelerated the development of indigenous chip designs and AI models following the restrictions.

The two alliances divide responsibilities: the Model-Chip Alliance fosters collaboration between model and chip developers, while the Shanghai committee promotes AI applications across sectors, including healthcare, finance and manufacturing.

Both alliances were announced as part of China’s broader effort to strengthen its domestic technology capabilities. The World Artificial Intelligence Conference featured demonstrations from numerous Chinese AI companies showcasing locally developed hardware and software solutions.