Chinese Cloud Firms’ AI Spending to Trail U.S. Peers as Infrastructure Gap Widens, Moody’s Says

Chinese hyperscale cloud providers are expected to keep spending heavily on artificial intelligence over the next two years, but their capital expenditures will remain well below those of U.S. rivals, underscoring a widening gap in global computing infrastructure, according to a Moody’s Ratings report published Thursday.

Moody’s said Chinese technology companies are stepping up AI investment, but their smaller revenue bases and weaker financial flexibility, compared with major U.S. firms, mean they are likely to rely more heavily on debt to fund expansion.