AI Photo: VCG

Multiple Chinese-listed technology companies have recently released fiscal reports this year, with the booming artificial intelligence (AI) sector highlighting their future business strategies.

Experts note that the recent engagement of companies in AI reflects the significance and urgency for businesses to enhance their self-development capabilities for this new frontier amid growing global complexities.

While the US "decoupling attempts" may not impede the rapid development of Chinese companies in the field, it does diminish exclusive opportunities for American companies to participate in the thriving and expansive Chinese market, experts noted.

On Thursday, according to Alibaba's financial report, the company invested approximately $800 million in the startup Moonshot AI during the 2024 fiscal year, acquiring about 36 percent equity, as a preferred stock investment in Moonshot AI.

Also on the same day, Xiaomi Group released its financial report for the first quarter of 2024, with revenue reaching 75.5 billion yuan ($10.43 billion), representing a notable 27 percent year-on-year growth. Among these figures, its core business segment - smartphone sector - saw the most significant increase of 32.9 percent year-on-year growth in terms of revenue.

Before Xiaomi's automotive business forms a larger-scale impact, smartphones remain the company's major focus in terms of performance. Regarding the smartphone industry, AI applications and edge-side large models are currently the most prominent growth areas, experts said.

Xiaomi President Lu Weibing told media that the company is actively developing edge-side large models and embracing AI applications, a strategy that hasn't changed much since the beginning, Jiemian.com reported on Friday.

Lenovo Group also noted its latest strategy on AI on the sideline of its fiscal report on Thursday. According to data provided by Lenovo Group, it is estimated that nearly 60 percent of personal computers will be AI PCs by the 2026/2027 fiscal year. At that time, the goal of Lenovo's AI PC is to account for 60 percent of Lenovo Group's total sales, while gradually expanding from AI PCs to AI smartphones, AI tablets, and other terminal devices, National Business Daily reported on Friday.

Domestic companies are escalating their endeavors to adopt new technologies by increasing investment and implementing strategic planning, which aligns with the nation's quest for high-quality development, Ma Jihua, a veteran telecom observer, told the Global Times on Friday.

The AI sector, characterized by its emerging and future-oriented nature, has become a focal point in China's pursuit of high-quality development. The increasing inclination toward industry advancement has propelled AI to the forefront of growth, the expert said.

While China is ramping up to embrace AI development, the US is once again on the move by attempting to curb this effort from China.

The House Foreign Affairs Committee on Wednesday voted to advance a bill that would make it easier for the Biden administration to restrict the export of AI systems, citing national security concerns toward China, according to Reuters' report.

China's primary advantage lies in the ability for AI to find more practical applications in a market of 1.4 billion people, thus facilitating rapid iteration from development to deployment, Ma said.

Ma pointed out that the US' attempts at "decoupling" from China are isolating itself from the rapidly evolving Chinese market. He gave the example of how US restrictions on China in semiconductor have inadvertently accelerated the development of Chinese companies in this field, fostering their self-reliance and capability for self-development. Consequently, China has emerged as an increasingly important player in conventional chip technology, transitioning into an exporting powerhouse, according to Ma.

Concurrently, as China's production capacity and market share continue to grow, American companies are experiencing a decline in their market presence, the expert said.

"Now, in the realm of AI, this pressure is driving Chinese firms to independently bolster the entire AI industrial chain. Consequently, American AI companies risk missing out on opportunities for AI implementation and iteration in the vast Chinese market," Ma said.