Chinese firms face pressure on AI investments as US peers’ spending keeps soaring
SCMP Tech / 4/30/2026
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Key Points
- Large US tech firms are projected to spend about US$700B on AI capex this year, far exceeding China’s roughly US$105B, highlighting a widening investment gap.
- Rising memory costs and sustained demand for AI applications are cited as key drivers behind the US companies’ soaring AI spending.
- Analysts expect Chinese companies’ growing demand for AI applications to pressure them to increase AI investment despite current constraints.
- The article notes that US companies including Google and Microsoft have recently signaled their AI-related spending direction, reinforcing the overall upward trend in US AI investment.
- The divergence in AI spending levels may shape competitive positioning between US and Chinese AI ecosystems over the near term.
Artificial intelligence investments by US tech giants continue to soar, dwarfing those of Chinese AI firms, but China’s rising appetite for AI applications will compel its tech companies to increase their AI spending this year, according to analysts.
The largest US tech companies are on track for more than US$700 billion in AI capital expenditures this year, driven in part by rising memory costs and continuously growing demand for AI applications.
Google and Microsoft on Thursday both said that...
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