China ramps up building national computing power network as AI token use surges

China is stepping up construction of a “national computing network”, aiming to turn artificial intelligence infrastructure into a public utility as token usage surges and telecoms operators seek new growth engines beyond mobile data and phone bills.

The push was highlighted by national broadcaster China Central Television and state-backed Xinhua news agency, which described the network as a “computing version of the state grid”. The reports likened tokens – the basic units of text, code and other information processed by AI models – to mobile data, framing them as the measurable commodity of the AI era.

Daily token calls in China exceeded 140 trillion in March, more than 1,000 times the level at the start of 2024, according to data from the National Bureau of Statistics. The reports said rising AI model costs began to weigh on developers and businesses, echoing the early days of the mobile internet when slow speeds and high charges later gave way to cheap, accessible mobile data after the roll-out of 4G and 5G networks.

The framing underscores how Beijing presents AI infrastructure. Rather than treating computing power as a resource controlled by cloud providers or individual data centres, policymakers increasingly positioned it as a national infrastructure system, alongside water networks, power grids, next-generation communications, urban underground pipelines, and logistics systems – priorities collectively known as the “six networks”.

Rising AI model costs are beginning to weigh on developers and businesses, echoing the early days of the mobile internet when slow speeds and high charges later gave way to cheap, accessible mobile data after the roll-out of 4G and 5G networks. Photo: AFP

Earlier this month, the State Council called for stronger planning and construction of the six networks. The National Development and Reform Commission said investment in the six networks and related areas was expected to exceed 7 trillion yuan (US$1 trillion) this year.

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