Bank of China unveils £102bn AI innovation boost plan
On 23rd January, the Bank of China presented the "Action Plan for Supporting the Development of the Artificial Intelligence Industry Chain." Over the next five years, the bank will allocate at least 1 trillion yuan, or approximately £102 billion, to provide financial support to entities in the AI sector.
During the event in Beijing, Ge Haijiao, Chairman of the Bank of China, highlighted the increasing importance of large AI models and generative artificial intelligence, which are becoming key drivers of economic development and a strategic element of national security.
The "Action Plan" includes support at all stages of the AI value chain—from providing key resources and technological innovations to industrial implementations. The goal is to create an integrated financial support system that will enable the dynamic development of this sector, the plan outlines.
By the close of 2024, the Bank of China is set to provide loans amounting to 1.91 trillion yuan (around £195 billion) to more than 100,000 technology companies. The institution also plans to strengthen its support for key technology firms and address challenges in strategic technological fields in the future.
As stated in the announcement, during the event, the "BOC Sci-Tech Innovation+" partnership programme was launched to support the AI ecosystem's development. The initiative included leaders from the technology sector, such as Huawei, Tencent, Baidu, iFlytek, along with representatives from key government and research institutions.
The programme focuses on key areas such as:
- Technological self-sufficiency: The priority is to support strategic technology resources and overcome barriers in critical areas.
- Promoting AI innovation: The Bank of China intends to support AI technology development by providing the necessary resources and funding.
- AI applications: Creating industrial systems and promoting the practical deployment of AI technology in various sectors.
AI industry arms race
Piotr Sankowski from the University of Warsaw noted on LinkedIn the "arms race" in the AI industry between China and the USA. "The Chinese plan was announced immediately after the US revealed $500 billion for the Stargate project. This sounds like a new arms race... in which the EU's AI spending seems negligible, given the recently announced plan to spend €1.5 billion on AI Factories," he commented.
Let's recall that President Donald Trump and the heads of Japan's Softbank, Oracle Corporation, and OpenAI announced the Stargate project at the White House. The giants will invest up to $500 billion in building data centres and the architecture needed to develop artificial intelligence.
As Trump stated during his speech at the White House, the company heads have decided to establish a joint venture that will invest at least $100 billion, and in the long term up to $500 billion over four years in building data centres in America, which will contribute to the creation of 100,000 jobs.
"This monumental undertaking is a resounding declaration of confidence in America's potential under a new president," said Trump.
