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China's AI Boom: 700 Million Users and Counting

China's generative AI market has hit a staggering milestone: more than 700 million users, meaning one in every two adults is now tapping into tools like chatbots, image generators, and writing assistants. The figures come from a new report released at the 7th China Internet Infrastructure Conference by the China Internet Network Information Center.

What Are People Actually Doing With AI?

If you ask most users, the answer is simple: getting answers. Intelligent Q&A is the top entry point, with 76% of users relying on it to look things up. But that's just the tip of the iceberg. Nearly half—47.8%—use AI for image and video processing, while 37.6% turn to it for text processing and 32.5% for writing summaries or meeting minutes.

What's more telling is how often people come back. Usage of AI comprehensive assistants and efficiency office apps has more than doubled compared to last year. In other words, it's not just a novelty anymore—it's becoming a habit.

The Engine Room: Computing Power and Models

None of this would be possible without serious muscle behind the scenes. As of June, China's smart computing power reached 2,185 EFLOPS, a whopping 177% increase year-on-year. The first domestically produced 100,000-card AI supercluster is now operational, with full-stack independence from chips down to cooling systems. That's a big deal—it means China's computing infrastructure has officially entered the 100,000-card era.

On the model front, Chinese teams are making waves. DeepSeek, Moonshot AI, and others have rolled out multiple trillion-parameter open-source large models. In fact, the top six spots on the global mainstream calling list are dominated by Chinese teams. Over 120,000 high-quality datasets have been accumulated, laying a solid foundation for future breakthroughs.

AI Hits the Factory Floor and the Farm

Industry adoption is accelerating, especially in embodied intelligence. More than 400 humanoid robot models were launched in the first half of the year, and annual production is expected to exceed 100,000 units. Manufacturing has already embraced AI at a rate above 30%, and agriculture is getting in on the action with large models like "Shennong," "Guyu," and "Fanli."

Capital is flowing in, too. In the first half of 2026, there were 1,255 AI investment and financing deals, with disclosed amounts reaching about 250.14 billion yuan—1.82 times the total for all of last year.

The report concludes that China has built a globally leading AI industry ecosystem. And now, the policy focus is shifting from "rushing to develop" to balancing "implementation" and "governance." The AI wave isn't just coming—it's already here.

Key Points:

  • Over 700 million generative AI users in China, penetration rate above 50%
  • Smart computing power up 177% year-on-year to 2,185 EFLOPS
  • First domestic 100,000-card AI supercluster operational
  • Top six global large models dominated by Chinese teams
  • AI investment reached 250.14 billion yuan in H1 2026, 1.82x full-year 2025