An anonymous reader share a report: China’s craze for generative artificial intelligence has sparked a wave of product announcements from startups and tech giants almost daily, but investors warn a shake-up is imminent as pressures mount. on costs and profits increase. The buzz in China, first sparked by the success of OpenAI’s ChatGPT nearly a year ago, has given rise to what a top Tencent executive described this month as a “war of hundred models,” as the company and its rivals from Baidu to Alibaba to Huawei promote. their offerings. China now has at least 130 major language models, accounting for 40% of the global total and just behind the United States’ 50%, according to brokerage CLSA.
Additionally, companies have also announced dozens of “industry-specific LLMs” tied to their core model. However, investors and analysts say most have yet to find viable business models, are too similar to each other and are now grappling with rising costs. Tensions between Beijing and Washington have also weighed on the sector, as US dollar funds invest less in early-stage projects and difficulties in obtaining AI chips made by companies like Nvidia begin to take hold . “Only those with the strongest capabilities will survive,” said Esme Pau, head of China internet and digital assets research at Macquarie Group, who expects consolidation and a price war as that the actors compete for users.
