AI Photo: VCG

China's artificial intelligence (AI) industry is experiencing rapid global growth, with both established tech giants and unicorn startups shifting their focus to international markets. Leading Chinese tech companies including ByteDance, Baidu, Tencent and emerging unicorns such as Shanghai-based MiniMax, Beijing-based Moonshot and 01.AI are grabbing the opportunities by going global, seeking to leverage their strengths in technology and innovation.

At the 2024 World Internet Conference (WIC) Wuzhen Summit, which took place from November 19 to November 22, in Wuzhen, East China's Zhejiang Province, industry insiders said that Chinese companies focused on large language models (LLMs) are rapidly advancing their research and development efforts on self-managed platforms, accelerating the application of AI in more sectors. Meanwhile, they are prioritizing their international strategies, viewing the overseas market as a key driver of growth.

The moves come as domestic LLMs companies face fierce technological competition from both home and abroad, alongside industry-wide price competition, which has resulted in significant price cuts for their models.

A June report from the Shenzhen-based Unique Research showed that out of 1,500 active AI companies worldwide, 751 are based in China, with 103 already expanding internationally, indicating the global presence of Chinese AI firms. 

Meanwhile, according to a report by the research firm Sensor Tower, three Chinese AI apps ranked among the top 10 most downloaded AI products in the US during the first half of 2024.

Analysts said that the current wave of Chinese AI going global showcases the growing competitiveness of Chinese AI startups, and highlights China's increasing strength in technological innovation.

"As an emerging field, AI offers vast opportunities. Chinese AI companies can use their technological and product strengths to capture a larger share of the global market," Zhou Hongyi, the founder and chairman of 360 Security Technology, told the Global Times at the Wuzhen Summit.

Key players in global AI landscape

Major players like Huawei, Alibaba, and iFlytek have recently launched their AI products overseas, marking a new era of global AI innovation. In May, Huawei launched its Galaxy AI to support digital transformation initiatives in North Africa.

Alibaba, for example, launched SeaLLMs, a model designed for Southeast Asian markets in 2023, aligning with the firm's e-commerce and cloud computing businesses in the region. ByteDance, the owner of TikTok, has rolled out consumer-facing apps, including the "AI homework helper" Gauth, the interactive character app AnyDoor, and the AI bot platform Coze for global markets. Minimax, one of China's leading AI start-ups, also launched Talkie AI for international users, South China Morning Post reported.

Notably, these tech giants have concentrated their international strategies in Southeast Asia and the Middle East. Additionally, demand is growing for AI technology in markets across Latin America and African countries along the Belt and Road Initiative.

Shen Yang, a professor studying AI and media at Tsinghua University, said these regions offer less competition, greater growth potential, and lower entry barriers compared to saturated Western markets, allowing Chinese AI tech giants to expand market share through technological strengths, cost efficiency, and government support.

According to Shen, these AI industry players are advancing globally by establishing research and development centers overseas, forming strategic partnerships, and participating in the development of international standards. Their efforts highlight their commitment to innovation and collaboration, establishing them as key players in the rapidly evolving global AI landscape.

For example, an AI app Talkie developed by MiniMax has gained significant traction in the overseas market and attained profitability. 

According to the information the company shared with the Global Times, Talkie has reached a milestone of 11 million monthly active users, with more than half of them from the US. The app, launched 17 months ago, has built a strong user base in the US, the Philippines, the UK, and Bangladesh. To date, it has been downloaded nearly 14 million times, generating total revenue of approximately $830,000.

Yan Junjie, founder of Shanghai-based AI unicorn MiniMax told the Global Times in a recent interview that when Chinese AI companies aim for global expansion, they must first "master the fundamentals" before introducing their products. "A deep commitment to technological advancement is a crucial prerequisite," Yan said, adding that only by achieving significant technological progress and establishing a robust business model can a company achieve sustainable growth and cement its global position.

Sheng Jingyuan, general manager of MiniMax's overseas business, who has worked in Silicon Valley for many years, told the Global Times that "Chinese companies have developed specific methodologies for creating global products, and they might surpass their Western counterparts in AI applications."

However, overseas expansion does not guarantee success. Experts said in unfamiliar markets with diverse cultural backgrounds, to be able to quickly adjust to the local market, comply with regulations and build awareness seems also no less challenging.

Enhancing competitiveness before going global

Over the years, China has made significant strides in the areas of AI technology research and development, application, and industrial growth, establishing itself as a major player in the global AI industry.

China and the US lead the global AI sector, according to the World Internet Development Report 2024 released by the Chinese Academy of Cyberspace Studies at the Wuzhen Summit on Thursday.

US companies dominate in developing, investing in, and commercializing advanced large AI models, whereas their Chinese counterparts focus on building strengths in AI innovation and market applications, the report noted.

"As the global competition in AI technology intensifies, Chinese AI companies are increasing their focus on independent innovation and we are already seeing positive outcomes," Wang Shijin, executive dean of the iFlytek AI research institute told the Global Times.

Meanwhile, as Chinese AI companies expand further into international markets, the world will likely experience a fresh wave of innovation and competition in the AI sector, with China playing a pivotal role, Wang said.

This is echoed by Zhou Hongyi. "With government support and the collective efforts of the entire industry, China's LLM industry has secured a globally leading position," Zhou said.

According to official data, by July 2024, the number of AI models registered with the Cyberspace Administration of China and exceeded 197, nearly 70 percent were industry-specific LLMs, especially in fields such as finance, healthcare, and education.

However, China encounters significant hurdles in advancing its AI sector. The US has not only imposed restrictions over exports of high-end AI chips, chip-making equipment and relevant technology to China, and has intensified scrutiny of Chinese investments in AI technologies.

"China's LLM startups must capitalize on their strengths and identify optimal development strategies to address limitations in computing power, chip supply, and data access," Zhou said.