Beijing Aims to Build $142.5 Billion AI Industry Within Two Years

Beijing has officially launched an ambitious strategy to double the size of its core artificial intelligence industry to exceed 1 trillion yuan, roughly 142.5 billion dollars, within the next two years. This target was unveiled during the 2026 Beijing AI Innovation Highland Construction Promotion Conference held on January 5. The city intends to transform itself into the global first city for artificial intelligence by building upon its existing 450 billion yuan industrial base.

To achieve this massive leap, the municipal government will implement nine major actions focusing on technological autonomy and industrial competitiveness. These efforts involve the establishment of four specialized innovation districts throughout the city, including hubs dedicated to talent, robotics, and future computing. Officials aim to foster an ecosystem where domestic technology can thrive independently of international supply chain pressures.

A critical part of the plan is breaking the software lock-in that currently fragments the AI hardware market. The Beijing Academy of Artificial Intelligence has updated its FlagOS system, which allows developers to run models across different types of chips without rewriting code. This capability is paired with the construction of massive domestic computing clusters to ensure the city has the power needed for advanced model training.

The strategy also emphasizes embodied intelligence, with a focus on using robots to build robots. Companies like Light Wheel Intelligence are contributing by providing industrial-grade simulation platforms that function as digital parallel universes. These platforms significantly reduce the time required to train robots by simulating complex physics and environmental variables in a virtual space.

Beijing is leveraging its massive human capital, as the city currently hosts 30 percent of China’s total AI scholars. This workforce will be supported by an aggregation of industrial investment funds exceeding 200 billion yuan. The goal is to nurture at least ten new listed companies and twenty unicorn enterprises by the end of 2027.

The city is also utilizing a reveal the list and command mechanism to solve specific technical challenges through competition. Ten key tasks for 2026 have been identified, ranging from multilingual translation systems to high-throughput automated laboratories. These target areas are designed to integrate AI directly into medical, manufacturing, and education sectors for broad economic impact. Source: Beijing Municipal Government