China

China claims quantum supremacy with Zuchongzhi 3.0 chip

Chinese researchers have developed the Zuchongzhi 3.0, a quantum processor 1 quadrillion times faster than the world’s best supercomputers. The 105-qubit chip, created at the University of Science and Technology of China, achieved impressive results, completing a quantum task in mere seconds—1 million times faster than Google’s Sycamore chip.

A breakthrough like this marks a major step forward in quantum computing, especially with its enhancements in coherence time and quantum error correction. The processor’s transmon qubits, made from materials like tantalum and niobium, also show significant improvements in gate fidelity, leading to more accurate computations.

Despite these advancements, experts note that classical computing methods could still close the gap, as seen in past quantum supremacy claims.

Zuchongzhi 3.0’s exceptional performance paves the way for more practical quantum computing applications, promising a new era of solving complex real-world challenges. The progress made in quantum gate fidelity and reduced noise sensitivity places China’s quantum processing technology at the forefront of global developments.

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Zhipu AI raises 500 million yuan amid rising competition

Chinese startup Zhipu AI has secured 500 million yuan (£54.8 million) in funding from the state-owned Huafa Group, following a separate 1 billion yuan capital raise earlier this month.

Huafa Group, a government-backed conglomerate based in Zhuhai, Guangdong province, announced its investment as Chinese cities compete to support AI firms, a sector seen as critical in Beijing’s technological rivalry with the US.

The funding comes amid increasing competition in China’s AI industry, particularly with Hangzhou-backed DeepSeek, whose large language models have gained attention for their cost-effectiveness and performance against Western alternatives.

Zhipu AI, established in 2019 and recognised as one of China’s ‘AI tigers,’ has received investments from major tech firms including Tencent, Meituan, and Xiaomi. The startup was valued at 20 billion yuan (£2.2 billion) in a funding round last July, according to business registration platform Qichacha.

With the new funding, Zhipu AI aims to enhance technological innovation and further develop its GLM foundation model.

However, the company faces challenges on the international stage, having been added to the US Commerce Department’s export control list in January, restricting its access to American components.

Despite these hurdles, China continues to bolster its AI sector as it seeks to establish a leading position in global artificial intelligence development.

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OpenAI launches responses API to boost AI agents

OpenAI has unveiled new tools for developers to build advanced AI agents, stepping up its game amid rising competition from Chinese startups.

The latest offering, called the Responses API, allows developers to create AI systems that execute complex tasks independently. This new tool replaces the Assistants API, which will be phased out by mid-2026.

The launch comes as Chinese startups make rapid advances in AI, with some claiming their models rival or surpass those of leading US firms at a lower cost.

One such company, Monica, recently introduced its autonomous AI agent, Manus, which it says outperforms OpenAI’s DeepResearch agent.

Monica’s rise follows growing recognition of Chinese AI innovations, including DeepSeek, which has impressed Silicon Valley executives.

On Tuesday, Monica announced a partnership with the team behind Alibaba’s Qwen AI models, further intensifying the global AI race.

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ICBC unveils $11 billion innovation fund

China’s Industrial and Commercial Bank (ICBC), the world’s largest commercial lender by assets, has launched an 80 billion yuan ($11.04 billion) technology and innovation fund to bolster the private sector.

The state-owned bank announced that the fund will focus on ‘hard technology’ fields such as semiconductors and advanced manufacturing rather than ‘soft’ technology like internet services.

ICBC chairman Liao Lin emphasised that the initiative aligns with central leadership directives, aiming to turn supportive policies into tangible benefits for private enterprises. The bank described the fund as ‘patient capital,’ indicating a long-term investment strategy rather than a rush for quick profits.

The launch follows China’s recent policy priorities for 2025, unveiled at its annual parliamentary meeting, which stress boosting consumption and achieving technological advances amid ongoing tensions with the US.

Additionally, the government plans to establish a state-backed fund to raise 1 trillion yuan from private investment to support technology startups.

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Xpeng plans major investment in humanoid robots

Chinese electric vehicle maker Xpeng is making a long-term push into humanoid robots, with potential investments reaching up to 100 billion yuan ($13.8 billion), according to CEO He Xiaopeng. Speaking at the annual parliamentary session, He described the company’s current investment as conservative but signalled a willingness to scale up significantly over the next two decades. Xpeng, which entered the humanoid robotics sector in 2020, unveiled its Iron humanoid robot last November, positioning it as a rival to Tesla’s Bot.

Chinese automakers are increasingly venturing into robotics, encouraged by policymakers aiming for breakthroughs in the field. Stellantis-backed Leapmotor has also joined the race, forming a robotics team to develop machines for industrial applications such as factory assembly lines. CEO Zhu Jiangming stated that these robots are intended to enhance efficiency by replacing human labour in production processes.

Xpeng’s CEO suggested that automakers could invest between 1-2 billion yuan per year in developing and deploying humanoid robots in real-world scenarios. As the industry shifts towards automation, carmakers are betting that advanced robotics will play a crucial role in future manufacturing and mobility solutions.

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Chinese investors turn to AI for stock market edge

Chinese retail investors are rapidly embracing AI tools like DeepSeek to navigate the stock market, marking a striking shift from last year’s government crackdown on computer-driven quantitative trading.

Online courses and packed training rooms reflect a growing eagerness among small-time traders to use AI-powered models, with many seeing them as essential in the digital age.

DeepSeek, developed by a hedge fund in Hangzhou, has not only boosted Chinese stocks but also reshaped perceptions of the country’s $700 billion hedge fund industry.

Despite the initial backlash against quant funds, which were previously blamed for market volatility, investors are now paying thousands of yuan to attend AI trading seminars.

Social media is flooded with courses teaching traders how to use DeepSeek to analyse companies, pick stocks, and even code their own trading strategies.

While major US funds like BlackRock and Renaissance Technologies have long used AI for investments, DeepSeek’s open-source model makes these tools accessible to China’s smaller asset managers and individual traders.

Financial institutions are also adapting to the AI-driven shift. Brokers are rushing to integrate AI models into their platforms, with industry leaders predicting a complete transformation in how Chinese investors make decisions.

Many now seek trading advice from DeepSeek instead of human wealth managers, reflecting a deep trust in the technology. However, experts warn that AI models still have limitations and could create market risks, especially if large numbers of traders act on the same signals.

While some remain cautious about AI’s role in investing, DeepSeek has undeniably changed public attitudes towards quant fund managers.

Many now view them as contributors to market efficiency rather than as culprits behind retail losses. As China’s stock market continues to evolve, AI looks set to play an increasingly dominant role in shaping investor behaviour.

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China expands university enrolment to boost AI talent

China’s top universities are set to expand undergraduate enrolment to develop talent in key strategic fields, particularly AI.

The move follows the rapid rise of AI startup DeepSeek, which has drawn global attention for producing advanced AI models at a fraction of the usual cost.

The company’s success, largely driven by researchers from elite institutions in China, is seen as a major step in Beijing’s efforts to boost its homegrown STEM workforce.

Peking University announced it would add 150 undergraduate spots in 2025 to focus on national strategic needs, particularly in information science, engineering, and clinical medicine.

Renmin University will expand enrolment by over 100 places, aiming to foster innovation in AI. Meanwhile, Shanghai Jiao Tong University plans to add 150 spots dedicated to emerging technologies such as integrated circuits, biomedicine, and new energy.

This expansion aligns with China’s broader strategy to strengthen its education system and technological capabilities. In January, the government introduced a national action plan to enhance education efficiency and innovation by 2035.

Additionally, authorities plan to introduce AI education in primary and secondary schools to nurture digital skills and scientific curiosity from an early age.

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AI to support China’s social welfare system

China is stepping up the use of AI and big data in elderly and social care as it seeks to address economic challenges posed by a shrinking workforce and an ageing population.

Civil affairs minister Lu Zhiyuan announced the initiative at the ‘Two Sessions’ political gathering, highlighting efforts to make services more accessible and efficient.

The country’s population has declined for a third consecutive year, with over 310 million people now aged 60 and above.

Officials are increasingly turning to technology to drive future growth. Local governments have moved swiftly to integrate AI into public services, with DeepSeek‘s chatbot gaining traction since its latest version was released in January.

Despite restrictions on AI chip sales imposed by the United States, DeepSeek’s cost-effective model has outperformed several Western competitors, reinforcing China’s position in AI development.

President Xi Jinping has reaffirmed the government’s support for AI, recently meeting with leaders from top technology firms, including DeepSeek, Tencent, Huawei and Xiaomi.

The push for AI adoption in social welfare services reflects a broader strategy to maintain economic stability and innovation in the face of demographic challenges.

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AxeleraAI receives $66 million EU grant for AI chip development

AxeleraAI, a promising AI chipmaker based in Eindhoven, Netherlands, has been awarded a €61.6 million ($66 million) grant by the European Union to develop its Titania chip.

The grant, provided by EuroHPC, aims to bolster Europe’s AI capabilities by supporting the development of a chip specifically designed for “inference” computing in data centres.

However, this initiative is part of the EU’s broader strategy to enhance its AI sector and reduce its dependency on US and Chinese technologies.

Fabrizio Del Maffeo, CEO of AxeleraAI, expressed pride in the award, viewing it as a significant opportunity for the Dutch company to expand its business.

The new chip will be built on the open-source RISC-V standard, a growing alternative to more traditional chip systems like those from Intel and Arm. AxeleraAI’s existing Metis chip is already being used in edge AI applications, such as monitoring safety in factories through CCTV analysis.

While the company does not aim to compete with industry giants like Nvidia in training AI models, Del Maffeo stated that the Titania chip is designed to excel in running large AI models once they are trained.

This shift towards more affordable inference computing is expected to become increasingly important as the demand for AI solutions grows. AxeleraAI has already raised $200 million from investors, including Samsung, since its founding in 2021.

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US national security threatened by large-scale federal workforce reductions

A former top National Security Agency official has warned that widespread federal job cuts could severely undermine US cybersecurity and national security.

Rob Joyce, former NSA director of cybersecurity, told a congressional committee that eliminating probationary employees would weaken the government’s ability to combat cyber threats, particularly those from China.

The remarks were made during a House Select Committee hearing on China‘s cyber operations targeting critical United States infrastructure and telecommunications.

More than 100,000 federal workers have left their jobs through early retirement or layoffs as part of President Donald Trump’s efforts to shrink government agencies, with support from billionaire advisor Elon Musk.

While national security roles were supposed to be exempt, some cybersecurity positions have still been affected.

The Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency (CISA) has already cut over 130 positions, raising concerns about the government’s ability to protect critical systems.

The White House and NSA declined to comment on the impact of the job reductions.

A DHS spokesperson confirmed that the cuts are expected to save $50 million and that further reductions in ‘wasteful positions’ are being considered.

However, critics argue that the loss of skilled personnel in cybersecurity roles could leave the country more vulnerable to foreign threats.

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