We examine the rise of cloud computing and AI in China and its impact on industry dynamics. We find that industries that depend more on cloud infrastructure experience a higher increase in firm entry and exit after cloud computing expands in China. The positive relation with firm exit is driven by the increased exit through business failure and adjustments. We also compare cloud computing to artificial intelligence (AI) and show a differential effect of these technologies on exit. For AI, larger incumbents are less likely to exit. M&A is also more likely for cloud computing but not for AI. Concentration decreases post-cloud computing expansion but increases post-AI. These findings point to changes in competition from new technologies but with differential effects based on which types of firms are likely to adopt new technologies.