(Yicai) Feb. 7 -- Shares of China Bester Group Telecom surged after the supplier of artificial intelligence computing power said it will invest CNY3.8 billion (USD529 million) to build AI data centers and a battery factory.

After jumping by its 10 percent daily trading limit earlier today, Bester [SHA: 603220] closed 3.7 percent higher at CNY21.65 (USD3) a share. The stock has more than halved in value from a mid-November high after a four-fold run-up from the start of last year as a result of the AI boom.

Bester plans to spend CNY3 billion (USD417 million) to construct AI computing power hubs in multiple regions such as the western province of Qinghai and the northern province of Shanxi to widen its service network, it said yesterday, adding that the project will take two years to finish.

Bester, which used to be known for building communication networks, has been transforming into an AI computing services provider in recent years. The Wuhan-based company leases graphics processing unit servers to clients.

The company will work with local governments, universities and colleges, internet giants, as well as key businesses in the industry chain to establish comprehensive AI platforms, it added.

Bester said in a separate statement yesterday that it will also invest CNY800 million (USD111 million) to build a new battery plant in the eastern Chinese city of Hefei. It will have the capacity to turn out five-gigawatt hours of lithium-ion batteries and energy storage systems a year. 

More specifically, the plant will assemble outsourced battery cells with a self-developed management system to take advantage of favorable local government policy. The project will take a year to complete and forms part of Bester’s Hefei investment plan announced last year, it said.

Last October, Bester revealed a plan to invest CNY5.5 billion in the capital of Anhui province to create an AI hub and a production facility for power and energy storage systems, but provided no further details at that time. After deducting for the battery project, the remaining investment for the Hefei AI hub should tally CNY4.7 billion.

Editor: Emmi Laine