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

China’s AI sector is moving from large-model rivalry to AI-agent deployment, with inference expected to account for 80% of the country’s compute market by 2029 and generate nearly ten-fold annual growth in computing demand. Chinese firms will spend roughly 600 billion yuan ($89 bn) on AI this year, surpassing 10% of domestic investment. Europe is launching a €30 bn gigafactory programme, with bids closing 12 Nov, awards in early 2027, construction that year and operations beginning mid-2028.