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🇨🇳⛵️ 出海: Chinese AI is expanding globally
Fact: Chinese LLMs are heavily underrated, for instance recently the excellent Deepseek-v2.5 or Qwen models.
Luckily for us, @AdinaY just wrote an excellent blog post explaining the Chinese AI ecosystem!
My key takeaways:
Since Google, OpenAI and Anthropic models are not available in China, local companies are fighting for the market. A really good market - AI has much higher penetration there than in the rest of the world, both with companies and individual users!
💰 But since Deepseek heavily cut prices in May 24, this spiraled into a price war that created a cut-throat environment with unsustainably low prices.
📋 On top of this, the local regulation is stringent: models must undergo licensing from a local censor (the Cyberspace Administration of China), that for instance requires models to refuse answering certain questions on the CCP. Although this is certainly simpler to implement than certain condition of the European AI Act.
💸 If this wasn't enough, VC investment in AI is drying out: By mid-2024, Chinese AI startups raised approximately $4.4 billion, vs $55B for US startups just in Q2 24.
📱 To get profitability companies have shifted from foundational models to model + application, for instance PopAI from [01.AI](http://01.ai/) with millions of users and high profitability.
⛏️ They also try to drill down specific industries: but these niches are also getting crowded.
➡️ Since their home market is becoming both too crowded and unhospitable, Chinese companies are now going for international market, "Sailing abroad" following the expression consacred for Zheng He's legendary journey in 1500.
There, they'll have to adapt to different infrastructures and regulations, but they have bright prospects for growth!
Read her post 👉 https://huggingface.co/blog/AdinaY/chinese-ai-global-expansion
Fact: Chinese LLMs are heavily underrated, for instance recently the excellent Deepseek-v2.5 or Qwen models.
Luckily for us, @AdinaY just wrote an excellent blog post explaining the Chinese AI ecosystem!
My key takeaways:
Since Google, OpenAI and Anthropic models are not available in China, local companies are fighting for the market. A really good market - AI has much higher penetration there than in the rest of the world, both with companies and individual users!
💰 But since Deepseek heavily cut prices in May 24, this spiraled into a price war that created a cut-throat environment with unsustainably low prices.
📋 On top of this, the local regulation is stringent: models must undergo licensing from a local censor (the Cyberspace Administration of China), that for instance requires models to refuse answering certain questions on the CCP. Although this is certainly simpler to implement than certain condition of the European AI Act.
💸 If this wasn't enough, VC investment in AI is drying out: By mid-2024, Chinese AI startups raised approximately $4.4 billion, vs $55B for US startups just in Q2 24.
📱 To get profitability companies have shifted from foundational models to model + application, for instance PopAI from [01.AI](http://01.ai/) with millions of users and high profitability.
⛏️ They also try to drill down specific industries: but these niches are also getting crowded.
➡️ Since their home market is becoming both too crowded and unhospitable, Chinese companies are now going for international market, "Sailing abroad" following the expression consacred for Zheng He's legendary journey in 1500.
There, they'll have to adapt to different infrastructures and regulations, but they have bright prospects for growth!
Read her post 👉 https://huggingface.co/blog/AdinaY/chinese-ai-global-expansion