China’s AI gaming cloud market reached RMB 1.86 billion in 2025, with both major segments recording triple-digit growth, according to IDC. AI infrastructure services generated RMB 1.61 billion, while model services and AI applications accounted for RMB 250 million, meaning infrastructure represented roughly 87 percent of AI gaming cloud spending. IDC forecasts the market will reach RMB 11 billion by 2029, when it is expected to contribute more than 50 percent of the overall gaming cloud market. The growth is driven by rising adoption of generative AI, large language models, multimodal models and AI agents across game development, testing, publishing and operations. Over the past five years, game industrialization has moved from a small group of pioneers to broader industry practice in China, with standardized art-production pipelines, modularized programming frameworks and expanded automated testing. The arrival of AIGC is pushing this into another phase, with LLMs, multimodal models and AI agents integrated into AI-native production pipelines, potentially participating in world-building, dynamic storyline generation and predicting player behaviour. IDC defines AI gaming cloud as AI technologies, products and services used by gaming companies throughout game planning, prototype design, development, testing, publishing and operations, divided into gaming AI infrastructure-as-a-service and gaming model-as-a-service combined with AI applications. Despite rapid expansion, AI gaming cloud remains relatively small compared with China’s broader gaming cloud market, which IDC describes as already worth tens of billions of yuan.