Amid the wave of global AI investments, China’s TikTok has confirmed the layoff of employees from its Malaysia division. According to a report by Reuters, over 700 employees have been laid off as the company pivots to increased use of AI for content moderation.

The information was first revealed by local media the Malaysian Reserve last Thursday, as the report notes that over 500 individuals were let go after receiving emails from the company. Most of the workers, according to the report, are said to be involved in content moderation on the platform.

The job cuts come as global tech companies are facing growing regulatory pressure in Malaysia, where the government mandates social media operators to apply for an operating license to combat cyber offenses.

According to a previous report by the South China Morning Post, social media and internet messaging platforms with over 8 million users in Malaysia must obtain a license by New Year’s Eve next year or face penalties under current cyber laws.

It is worth noting that more layoffs might be on the way, according to Reuters. Citing sources familiar with the situation, Reuters suggests that the Chinese tech giant is planning further layoffs next month as it aims to streamline some of its regional operations.

In response to inquiries from Reuters, TikTok confirmed the layoffs last Friday, but refused to provide an exact number of employees affected in Malaysia. According to a TikTok statement cited by Reuters, the company is implementing these changes as part of its ongoing efforts to enhance the global operating model for content moderation.

TikTok utilizes a combination of automated detection and human moderators to review the content posted on its platform, Reuters notes.

Furthermore, the Chinese tech giant reportedly plans to invest USD 2 billion in trust and safety this year and will continue to focus on improving efficiency, noting that 80% of content that violates guidelines is now removed by automated technologies, according to Reuters.

According to the company’s website, ByteDance, TikTok’s parent company, has over 150,000 employees based out of nearly 120 cities worldwide.

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• [News] Despite Geopolitical Tensions, China’s AI Startups Break into the U.S. with Products like Chatbots
• [News] Broadcom Reportedly Developing 5nm AI Chip with ByteDance, Manufactured by TSMC

(Photo credit: TikTok)

ByteDance, the parent company of TikTok, is said to be collaborating with TSMC, eyeing for the mass production of two self-developed AI chips by 2026, according to reports by Economic Daily News and The Information.

ByteDance’s AI chips are expected to be made with TSMC’s 5nm node, which would be one generation behind the foundry giant’s most advanced process, the reports suggest, making the move comply with the U.S. export regulations to China. The chips are similar to NVIDIA’s next-generation flagship AI chip, Blackwell, which are manufactured with TSMC’s 4NP node.

Citing sources familiar with the matter, the reports note that the tech giant in China aims to reduce its reliance on NVIDIA for AI model development. Though the chips are still in the design phase and the plan is subject to change, ByteDance’s self-designed chips could save billions of dollars compared to purchasing NVIDIA’s products, according to the reports.

The Information estimates that ByteDance’s spending on developing generative AI models has been increasing, and it is rumored that the company has ordered over 200,000 NVIDIA H20 chips this year, costing it over USD 2 billion, with some orders still pending delivery.

In response to US export bans, NVIDIA launched AI chip H20, L20 and L2, specially designed for the Chinese market earlier this year. According to a previous report by Wccftech, H20 GPU has 41% fewer Cores and 28% lower performance versus H100. Still, the product is reportedly seeing strong demand for AI servers among Chinese Cloud Service Providers (CSPs) and enterprises, including Huawei and Tencent.

However, due to its lower computing power, Chinese companies need to purchase more H20 chips to build clusters with equivalent computing capacity, which raises costs, Economic Daily News notes.

According to TSMC’s financial report in the second quarter, North American clients contributed 65% of its total revenue. While China, the second-largest market, contributed 16% of its quarterly revenue, with a significant jump from 9% in the first quarter and 12% during the same period last year.

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• [News] China Plans to Set at Least 50 AI Standards by 2026, from Language Models to Semiconductors
• [News] Broadcom Reportedly Developing 5nm AI Chip with ByteDance, Manufactured by TSMC

(Photo credit: ByteDance)

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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• [News] China’s Core AI Industry Achieved a Market Size of Nearly CNY 600 Billion

(Photo credit: Baidu)

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)

According to a report from global media outlet Financial Times citing sources, Chinese authorities plan to implement mandatory reviews of large AI models. Reportedly, Chinese government officials are testing the large language models of AI companies to ensure that the systems embody core socialist values.

The Cyberspace Administration of China is said to have required major tech companies such as ByteDance, Alibaba, Moonshot, and 01.AI, as well as AI startups, to participate in these mandatory reviews.

Sources indicate that this effort involves testing a range of responses from the large AI  models, including those on politically sensitive topics in China and related to Chinese President Xi Jinping. Officials from the Cyberspace Administration of China’s local branches are conducting the reviews, examining the models’ training data and other security processes.

A Hangzhou-based AI company reported that the Cyberspace Administration has dedicated teams for this task, who visit offices to conduct audits. The company mentioned that their first review did not pass, and after months of adjustments and communication with peers, they passed the second review.

Regarding the aforementioned matter, the Cyberspace Administration, ByteDance, Alibaba, Moonshot, Baidu, and 01.AI have not yet responded.

(Photo credit: Alibaba)

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• [News] China Plans to Set at Least 50 AI Standards by 2026, from Language Models to Semiconductors
• [News] China Targets Tech Leadership by 2035 in Six Areas, Including Semiconductors