China's major technology companies, including Alibaba, Tencent, and Baidu, are significantly increasing their investments in artificial intelligence (AI) despite facing restrictions from the United States. These companies are focusing on acquiring infrastructure to support the training of large language models. Baidu's AI cloud revenue reached RMB 5.1 billion in Q2 2024, showing a 14% year-over-year growth, with generative AI-related revenue accounting for nearly 9% of the total AI cloud revenue, up from 6.9% in Q1 2024. Since 2023, 30% of Tencent's and 40% of Alibaba's deals in China have been directed towards AI startups. The competition for dominance in China's AI sector is intensifying, even with reduced capital support for AI startups.