China Approves Eleven Companies Including Baidu and SenseTime for Mass Market AI Products
In a significant move, China has granted approvals to eleven companies, including tech giants Baidu and SenseTime, to release mass market AI products. The announcement comes as the Chinese government aims to support the development of AI technology to compete with the United States. Unlike other countries, China requires companies to undergo security assessments and obtain clearance before launching such products.
Shares in Baidu and SenseTime experienced a surge in early Hong Kong trade, with gains of 3.1% and 2.7% respectively. This increase occurred despite the broader market trading 0.4% lower.
Baichuan Intelligent Technology and Zhipu AI, two AI startups, also revealed their plans for public launches on the same day. This highlights the growing interest in AI technology in the Chinese market.
The recent approvals were widely anticipated following the introduction of interim rules by China to regulate generative AI products for the public. These rules came into effect on August 15 and allowed companies to expand their AI product tests and features without seeking prior government approval, provided the products were targeting businesses.
Several major tech firms, including TikTok owner ByteDance and Tencent Holdings, were among the firms that received government approvals for their AI plans. However, companies like Alibaba Group, which had been working on AI large language models, did not obtain clearance. This has raised speculation about possible consolidation in the industry.
Analysts believe that the approved companies now have an early mover advantage, allowing them to fine-tune their products faster than their competitors. However, the industry may soon face consolidation, with only companies possessing data and technological capabilities able to advance.
With the Chinese government’s endorsement of AI products, it is expected that the industry will witness further growth and competition. The development and release of mass market AI products have become a crucial focus for companies in China, as they strive to establish dominance in this rapidly evolving sector.
