Amid Rivalry With US, China Approves Over 40 AI Models For Public Use In Past 6 Months

In the past half-year, China has approved over 40 artificial intelligence (AI) models for public use, following the introduction of an approval process.

What Happened: The recent surge in AI approvals is part of China’s strategy to rival U.S. AI development. In the latest wave, Chinese regulators endorsed the use of 14 large language models (LLMs), benefiting companies like Xiaomi Corp (OTC:XIACF), 4Paradigm, and 01.AI, as reported by Reuters.

The requirement for tech companies to seek regulatory approval before public use of their LLMs was introduced by Beijing in August. This policy underscores China’s commitment to bolstering AI technology development while ensuring control and oversight.

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Companies like Baidu Inc (NASDAQ:BIDU), Alibaba Group Holding Ltd (NYSE:BABA), and ByteDance were among the first to receive approval for their AI models in August, shortly after the policy inception. While a complete list of approved firms remains undisclosed, over 40 AI models have reportedly been approved to date. The drive to create AI products in China was largely fueled by OpenAI‘s chatbot ChatGPT’s global success in 2022.

Why It Matters: This development follows predictions by McKinsey that China would invest trillions in AI over the next decade, viewing it as a critical research and economic growth area. However, the anticipated AI boom has not translated into a significant increase in cloud services spending in the country.

Simultaneously, China’s AI advancement has raised concerns over potential misuse for espionage, with the FBI voicing worries about AI serving as a tool for China’s alleged hacking activities. China’s intelligence agency, the MSS, is reportedly using AI to challenge the CIA and gather intelligence on U.S. companies developing emerging technologies.

At the time, China had 130 LLMs, or 40% of the global total, just behind the US with 50%, according to CLSA. Baidu’s Ernie Bot, a leading Chinese chatbot like ChatGPT, reached 100 million users in December. 

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