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China Unicom is significantly increasing its capital expenditures for computing power by 28% in 2025, reflecting the rapid adoption of AI technologies in China. This move aligns with broader trends among major tech companies, including Alibaba, which has committed substantial funds to AI infrastructure. The company's total budget for capital expenditures this year is set at 55 billion yuan (approximately US$7.6 billion).
Despite a reported decline in overall capital expenditures, China Unicom's focus on AI and computing power remains strong, with a 19% increase in spending on related infrastructure. The company is also establishing large-scale intelligent computing centers across various regions to support the growing demand for AI applications. This strategic shift aims to transform China Unicom from a traditional telecom operator into a leading technology services provider.
• China Unicom plans a 28% increase in AI-related capital expenditures.
• Alibaba earmarks US$52 billion for AI and cloud computing infrastructure.
AI refers to the simulation of human intelligence in machines, which is driving significant investments in computing infrastructure.
Computing power is essential for running AI applications, and its demand is increasing rapidly in China.
Data centers are facilities used to house computer systems and associated components, crucial for supporting AI workloads.
China Unicom is a state-owned telecommunications operator focusing on enhancing AI infrastructure and computing capabilities.
Alibaba is a major private tech company investing heavily in AI and cloud computing to expand its infrastructure.
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