With AI giants in the Western world, such as OpenAI, Google and Meta, stealing the spotlight by their development of generative AI, some big names in China have introduced their AI models over the past 18 months, according to a latest report by CNBC.

Though trying to keep a low profile, five tech conglomerates in China, including Alibaba, Baidu, ByteDance, Huawei and Tencent, have launched their AI models lately, adding a new dimension to the competitive landscape of the ongoing tech rivalry between China and the U.S. Here is a brief introduction of the major Chinese AI models developed by the country’s leading tech firms, based on the information compiled by CNBC and other media reports.

Alibaba: Tongyi Qianwen

In November, 2023, a report by pandaily notes that Alibaba Cloud released its AI model, Tongyi Qianwen 1.0 a few months ago, while the 2.0 version was introduced later in the same year. Another report by South China Morning Post states that as of May, Alibaba reports that its Tongyi Qianwen AI models, often referred to as Qwen, are utilized by more than 90,000 corporate clients across China.

CNBC notes that in terms of Qwen, the company has developed various versions tailored to different functions. For instance, one model specializes in generating content or solving math problems, while another handles audio inputs and provides text-based responses.

It is worth noting that as some Qwen models are open-sourced, developers are allowed to download and use them under certain restrictions, according to CNBC.

Baidu: ERNIE

As one of China’s leading internet companies, Baidu was among the first to introduce generative AI applications in the country. A report by The Verge notes that the Ernie chatbot was available for download in August, 2023, after the approval by the Chinese government.

CNBC reports that Baidu intends to compete with OpenAI’s ChatGPT with Ernie Bot, as the company claims the bot to have 300 million users.

According to CNBC, ahead of the launch of its “Turbo” version, which took place in late June, Baidu stated that its Ernie 4.0 offers capabilities comparable to OpenAI’s GPT-4. According to Baidu, this foundational model has advanced understanding and reasoning abilities.

Similar to other companies, Baidu is offering access to its AI model through its cloud computing services, CNBC says.

ByteDance: Doubao

TikTok parent company ByteDance, though entered the AI race later than competitors like Baidu and Alibaba, has surprised the market with its low-cost Doubao model, which was launched in May, 2024.

According to a report by technode, the model can process 2 million Chinese characters, equivalent to 1.25 million tokens, for just RMB 1 (USD 0.14). In comparison, OpenAI’s latest multimodal model, GPT-4o, costs USD 5 per million input tokens.

CNBC notes that Doubao has various capabilities, including voice generation and coding support for developers.

Huawei: Pangu

Introduced by Huawei in 2021 as the world’s largest pre-trained Chinese large language models (LLMs) with over 100 billion parameters, the Pangu models are now entering their fourth iteration, according to Counterpoint. In May, 2024, the latest Pangu models are said to boast 230 billion parameters.

Interesting enough, Huawei has adopted a different strategy from its competitors with its Pangu AI models, CNBC remarks. The tech giant focuses on developing industry-specific models tailored to sectors like government, finance, manufacturing, mining, and meteorology.

For instance, Huawei claims that its Pangu Meteorology Model can predict a typhoon’s trajectory 10 days in advance in just 10 seconds, a task that previously took four to five hours, according to CNBC.

Tencent: Hunyuan

Last year, Tencent introduced its foundational model, Hunyuan, which is accessible through Tencent’s cloud computing services.

According to CNBC, Tencent has highlighted Hunyuan’s strong Chinese language processing abilities and advanced logical reasoning, supporting features like image generation and text recognition. The model is designed for use across industries such as gaming, social media, and e-commerce.

As the operator of China’s largest messaging app, WeChat, Tencent launched an AI chatbot this year based on the Hunyuan model. The AI assistant, named Yuanbao, can access information and content from WeChat, setting it apart from competitors, CNBC notes.

Notably, China’s large language models, just like its rivals in the West, rely on the strong computing power of AI chips. A previous report by Reuters in November, 2023, states that Tencent is said to have stockpiled a substantial reserve of AI chips from NVIDIA, as the company prepares in advance to train its Hunyuan AI models for the following generations.

How far will the tech giants in China be able to push the boundaries of AI models? The answer may lie in the development of the country’s domestic chips, as the U.S. authority already banned the export to China of AI chips.

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(Photo credit: Baidu)

According to a report from Nikkei on August 29, Apple is said to be betting that its first iPhone with Apple Intelligence will be a hit. Thus, the tech giant has requested suppliers to provide components for approximately 88 to 90 million iPhones, over 10% more than the initial component orders of 80 million units for new iPhones in 2023.

Reportedly, some component suppliers have received orders for more than 90 million iPhones. However, they also noted that Apple’s initial orders are typically larger, with adjustments made based on actual sales performance after the launch.

An industry source cited in the report expressed caution regarding Apple’s strong order volume, noting that geopolitical factors are likely to pose significant challenges for iPhone sales in China.

The report cited multiple sources, noting that Apple suppliers are generally cautious,  and forecasting that iPhone shipments for the year will likely be flat, due to the high comparison base from 2023.

In late 2022, COVID-19 has caused disruptions in Zhengzhou, China, the world’s largest iPhone manufacturing hub, resulting in the delay in iPhone shipments to the first half of 2023.

On the other hand, it is still unclear how Apple Intelligence will operate in China, as Apple has yet to finalize agreements with any Chinese AI companies.

While OpenAI’s chatbot, ChatGPT, is available in countries like the United States, it is not accessible in China. To introduce similar AI functionalities, Apple will likely need to collaborate with Chinese AI companies.

A previous report from Economic Daily News once indicated that Apple has been in discussions with Baidu, Alibaba Group, and Beijing-based startup Baichuan AI, but no agreements have been confirmed yet.

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(Photo credit: Apple)

According to a report from The Wall Street Journal citing sources on August 13th, it’s revealed that Chinese internet companies and telecom operators have been testing Huawei’s latest processor, the “Ascend 910C,” in recent weeks. Reportedly, Huawei has informed potential customers that this new chip is comparable to NVIDIA’s H100 GPU, which cannot be directly sold in China.

Huawei’s ability to continue advancing its chip technology is a sign of its efforts to counter U.S. sanctions. However, the report also indicated that Huawei is already experiencing production delays with its current chips. The company faces additional U.S. restrictions, limiting its access to parts for production equipment and the latest memory used in AI hardware.

The sources cited by the same report point out that, TikTok’s parent company ByteDance, search giant Baidu, and state-owned telecom operator China Mobile are in preliminary talks with Huawei to secure the Ascend 910C chip. These negotiations suggest that Huawei could secure orders for more than 70,000 chips, valued at approximately USD 2 billion.

Reportedly, Huawei aims to begin shipping the Ascend 910C in October, but the final delivery schedule might differ from the initial plan and could be subject to adjustments.

Under U.S. sanctions, customers in China are forced to purchase the H20 from NVIDIA, which is a “downgraded” version of the AI chip designed specifically for the Chinese market.

Per a previous report from South China Morning Post, it’s expected that Chinese tech giants may be considering a shift towards local AI products, which could pose a challenge to NVIDIA. Currently, China accounts for 17% of NVIDIA’s revenue in the 2024 fiscal year, making the competition in the Chinese market increasingly fierce for NVIDIA.

Compared to NVIDIA’s customers in China, NVIDIA’s U.S. customers, such as OpenAI, Amazon, and Google, will soon have access to NVIDIA’s latest Blackwell architecture chips, including new products like the GB200, which NVIDIA claims offer significantly improved performance compared to existing products.

Meanwhile,  Wall Street Journal also has cited sources, pointed out that NVIDIA is working on another China-oriented chip called B20, but the design might have trouble getting U.S. approval for China export if the regulations are further tighten.

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• [News] NVIDIA Reportedly Developing Tailored Version of the Blackwell Series for Chinese Market
• [News] U.S. Reportedly Enhancing Chip Export Restrictions to China, while NVIDIA’s H20 Might Get Banned

(Photo credit: NVIDIA)

With the chip war between the two great powers heating up, the U.S. is reportedly mulling new measures to limit China’s access to AI memory. As the restrictions might be imposed as early as late August, rumor has it that Chinese tech giants like Huawei and Baidu, along with other startups, are stockpiling high bandwidth memory (HBM) semiconductors from Samsung Electronics, according to the latest report by Reuters.

Citing sources familiar with the matter, the report notes that these companies have increased their purchases of AI-capable semiconductors since early this year. One source states that in accordance with this trend, China contributed to around 30% of Samsung’s HBM revenue in 1H24.

Regarding the details of the potential restrictions, sources cited by Reuters said that the U.S. authority is anticipated to establish guidelines for restricting access to HBM chips. While the U.S. Department of Commerce declined to comment, it did state last week that the government is continually evaluating the evolving threat landscape and updating export controls.

The Big Three in the memory sector, Samsung, SK hynix and Micron, are all working on their 4^th generation (HBM3) and 5^th generation (HBM3e) products, while closely cooperating with AI giants such as NVIDIA and AMD in developing AI accelerators.

Reuters notes that the surging HBM demand from China recently has primarily focused on HBM2e, which is two generations behind HBM3e. However, as the capacities of other manufacturers are already fully booked by other American AI companies, China has turned to Samsung for its HBM demand.

Sources cited by Reuters also indicate that a wide range of businesses, from satellite manufacturers to tech firms like Tencent, have been purchasing these HBM chips. Meanwhile, Huawei has been using Samsung HBM2e to produce its advanced Ascend AI chip, according to one of the sources. It is also reported that Chinese memory giant ChangXin Memory Technologies (CXMT) has started mass production of HBM2.

Samsung and SK hynix declined to comment, neither did Micron, Baidu, Huawei and Tencent respond to requests for comment, Reuters notes.

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• [News] US Reportedly Weighs Stricter Limits on AI Memory Access for China
• [News] U.S. Reportedly Enhancing Chip Export Restrictions to China, while NVIDIA’s H20 Might Get Banned

(Photo credit: Samsung)

Due to restrictions on AI products’ usage in China, Apple is actively seeking Chinese partners to advance in the local AI application market. According to the latest report by the Economic Daily News, the tech giant has been engaged with Chinese firms such as Baidu, Alibaba, and Baichuan Intelligence to push AI efforts. While the move helps to boost these firms’ investment in AI server infrastructure, it may further benefit Taiwan’s AI server supply chain.

The report noted that the industry is optimistic about Baidu’s potential cooperation with Apple, while Alibaba is also a strong competitor. Taiwanese contract electronics manufacturer Inventec, a contract manufacturing partner for both Baidu and Alibaba’s servers, thus reportedly positions itself as a major winner in Apple’s bid to capture the Chinese AI application market.

It is worth noting that Inventec has formed strong partnership with Baidu, as the company has been providing customized server manufacturing services for the Chinese search engine leader for 13 years, according to the report. Inventec has been a key partner since the second generation of Baidu’s super AI computing platform, X-MAN 2.0, which addresses cooling challenges with cold plate liquid cooling technology.

Inventec’s clients include the four major North American cloud service providers (CSPs) as well as Chinese CSP giants such as Baidu, Alibaba, Tencent, and ByteDance.

Based on the information disclosed on its official website, Inventec not only builds edge computing products for brand-name server customers, but also focuses on customizing designs to meet cloud clients’ demands for deep learning, training, and machine learning by maximizing the synergies between CPU and GPU.

The pressure Apple has been facing in the Chinese market, on the other hand, is escalating in the AI arena. As China is Apple’s largest market for iPhones outside the United States, in order to bring AI functions into its devices, Apple is still searching for a Chinese AI partner to support its new iPhone launch in a few months.

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• [News] Apple’s AI Push on iPhone 16 in China Faces Obstacles in Finding Local Partners

(Photo credit: Inventec)