Beijing plans a massive expansion of its intelligent computing power to over 130,000 petaflops by the end of 2026, aiming to establish itself as a leading hub for AI innovation and to drive its emerging token economy amid rising competition with the United States.
- Beijing targets over 130,000 petaflops of AI computing power by year-end 2026.
- New 'token factories' will enhance AI token output for economic applications.
- Focus on open-source RISC-V chips paired with AI operating systems.
What happened
Beijing announced plans to significantly increase its intelligent computing capacity by adding 50,000 petaflops in the second half of 2026. Combined with gains achieved in the first half, this will bring the city’s total compute power above 130,000 petaflops by year-end. One petaflop equals one trillion calculations per second, highlighting the scale of this expansion.
Alongside raw computing power, Beijing is unveiling initiatives to foster the token economy, including the construction of AI-focused data centers known as 'token factories'. These facilities aim to efficiently generate AI service usage tokens, which are essential for billing and measuring AI processing. The strategy also involves cultivating an open-source technology ecosystem by integrating RISC-V chip architecture with AI operating systems to provide a comprehensive framework for AI applications.
Why it matters
This ramp-up reflects Beijing’s ambition to position itself as a national leader in AI and digital technology, fueling economic growth by integrating AI into sectors such as manufacturing, education, and tourism. The expanded computing capacity and token economy infrastructure support China’s broader efforts to compete with the United States in cutting-edge technology development.
The focus on open-source chip design and AI operating systems also signals a strategic move to reduce dependency on Western proprietary technologies, potentially reshaping global semiconductor and AI software markets. Moreover, the rapid surge in AI token demand—evidenced by a thousand-fold increase since early 2024—underlines the importance of scalable computing resources for sustaining China’s digital economy expansion.
What to watch next
In the coming months, observe the deployment and operational scaling of Beijing’s new token factories, starting with Beijing Yihao, which has demonstrated strong daily token production capacity. Expansion of similar facilities nationwide will be key to supporting the growing AI service ecosystem and its associated token economy.
Additionally, Beijing’s push for international cooperation on AI and digital infrastructure, especially within Belt and Road Initiative partner nations and the Global South, may influence global technology collaboration and governance models. Monitoring developments from forums like the World Internet Conference will offer insights into China’s geopolitical strategy around AI technology diplomacy.