In a resounding display of confidence in the burgeoning artificial intelligence (AI) landscape, Alibaba Group Holding Ltd. and Tencent Holdings Ltd. have teamed up with other prominent Chinese investors to infuse a whopping 2.5 billion yuan (equivalent to $342 million) into the AI startup Zhipu. This substantial investment reflects the growing interest and capital pouring into the red-hot field of AI.
China’s two tech giants, Alibaba and Tencent, have joined forces with competitors and fellow industry leaders such as Ant Group Co., Xiaomi Corp., HongShan (formerly known as Sequoia China), and Meituan to back Beijing Zhipu Huazhang Technology Co. These firms collectively seek to challenge OpenAI’s ChatGPT by fostering domestic AI innovation. The recent financing round for Zhipu has drawn significant attention, with many of the same companies having previously participated in a $300 million funding effort for Zhipu’s rival, Baichuan.
Zhipu and Baichuan are prominent players in the growing field of generative artificial intelligence, striving to attain the level of technology offered by industry giants like Microsoft Corp.-backed OpenAI and Google. Venture capital firms and tech leaders are channeling substantial investments into AI development and training, mirroring the tremendous enthusiasm witnessed in Silicon Valley and Europe. Just recently, Robin Li, the billionaire founder of Baidu Inc., boldly declared that his company’s extensive language model, Ernie, is on par with OpenAI’s GPT-4, asserting a leading position in this national competition.
Zhipu, headquartered in Beijing, stands out as one of the first Chinese companies to receive government approval for public deployment, a significant milestone achieved in August. Since then, Zhipu has released an open-source AI model and introduced a chatbot named Qingyan.
The fervent interest in Zhipu and its fellow innovators underscores the broader implications of the intensifying competition between the United States and China in the field of AI. This rivalry is anticipated to reshape numerous industries, spanning from transportation to media and finance, potentially driving a new era of economic growth. Furthermore, AI technology possesses applications in government and military domains, introducing an added layer of complexity to the already strained relationship between Washington and Beijing.
The United States recently tightened restrictions on Chinese access to advanced chips produced by companies like Nvidia Corp., chips essential for training and running AI models. Many experts within the Chinese AI industry anticipate a growing need for homegrown alternatives, given these restrictions. However, it’s worth noting that Washington has been expanding its list of restricted companies to encompass AI chip design firms as well, further complicating the landscape.
