China's Artificial Intelligence Sector Shifts from Models to Agents

Serdar HocamAuthor & Editor

According to a report by the China Telecom Research Institute, China's AI sector is focusing on agent deployment, while Europe aims for seven gigafactories by 2028.

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China's AI industry is moving from models to agents, a state report says

As China's artificial intelligence sector shifts from a model race to the deployment of AI agents, inference operations are expected to reach 80% of the country's computing market by 2029. Meanwhile, Europe is pursuing an approximately 30 billion euro program to build up to seven AI gigafactories.

China's Agent-Centric Strategy

A report prepared by the China Telecom Research Institute stated that the country's AI sector is evolving from large models and raw computing power toward deploying and selling AI agents.

Growth of the Inference Market

According to the report, inference operations will account for 80% of China's computing power market by 2029, surpassing training demand.

Spending by Chinese Companies

Chinese tech companies are projected to spend approximately 600 billion yuan, or 89 billion dollars, on artificial intelligence this year.

Europe's Gigafactory Plan

The European Commission launched a call for proposals in July to establish up to seven AI gigafactories, with these machines planned to be operational by mid-2028.

Funding and Timeline Uncertainties

While about 1 billion euros of Europe's 30 billion euro program has been secured, the deadline for proposals has been set for November 12.