ChatGPT: Investment and Development Status in China

SirmioneCG
2023-02-19

In today’s China market, we hear more and more about two words "ChatGPT" and "Metaverse." Both are listed in the top three of the science and technology breakthroughs in 2022. Now the capital flood in the AI field, and in the competition of the two darling of Internet technology, how can we identify the core value of ChatGPT to achieve commercial monetization?


图片

01

The Battle for Supremacy

Perhaps "metaverse" is no longer strange to us, it integrates 5G, blockchain, artificial intelligence, digital currency, digital twin and other technologies, allowing us to step into the immersive experience of the virtual reality. Some people even thought that the metaverse could be the "ultimate form" of the Internet as it can fulfill many of our needs in the virtual future. "Web3.0" as the core technology layer of the metaverse has been considered a very advanced concept, but a new AI chatbot "ChatGPT" launched by OpenAI in November 2022, has becoming a hot phenomenon. Only five days after its launch, users of ChatGPT have exceeded 1million. As a powerful intelligent tool, ChatGPT is naturally favored by capital market.

图片


Data Source from:ARK Invest

Recently, a number of tech and media giants have rushed to gain ascendancy after launch of ChatGPT. In addition to Microsoft, Amazon, and BuzzFeed, On January 26 of 2023, according to media reports, Facebook parent company Meta will offer OpenAI millions of dollars to help generate creator content for Facebook and Instagram. Bard was officially announced by Google in early February in response to the sudden launch of an enhanced version of Bing. Baidu, a pioneer in AI development in China, has also announced that it will launch a domestic version of its ChatGPT chatbot in March. Other Chinese tech giants such as Tencent, JD.com, Alibaba, 360 Security Technology, NetEase, and Kuaishou Technology are reportedly working on bringing similar AI-powered apps into the competition.


02


AI attracting most of the investments while the metaverse loses its hype

Nowadays, "ChatGPT" and "Metaverse", as the two major IT trends, are in arm race. Bill Gates recognizes ChatGPT as the most promising innovation. In January 2023, Microsoft announced expansion of its cooperation with OpenAI, intend to put in another $10 billion with other investors, integrating OpenAI's chatbot ChatGPT to Azure cloud services. With this funding, OpenAI will be valued at a staggering estimate of $29 billion.

图片

Picture source from OpenAI

However, the used to be glorious metaverse, compared with ChatGPT, showing a current trend of capital withdrawal, among which many teams of Microsoft related to the metaverse have disbanded.
Since 2022, in addition to the ChatGPT, a large number of emergent AI companies favored by top VCs are included in the 'intelligent application of 40' list jointly issued by Madrona, Goldman Sachs, Microsoft, amazon web services and PitchBook. Sequoia Capital believes that "generative AI has the potential to generate trillions of dollars in economic value".

图片
Picture source from Madrona
Since BuzzFeed’s announcement of using ChatGPT to enhance content creation, its stock price has soared nearly 120%. On the first trading day of the year, many AI chatbot software concept stocks even exceeded the limit of 20% in the A share market of China.
图片

Data source from:east money net

Great Wall Securities’ (one of the top Chinese securities) TMT team believes that AIGC (AI-generated content) application tools such as ChatGPT and the current popular virtual AI art creation apps, are expected to drive the overall AI industry recovery and booming. ChatGPT will accelerate research and development of domestic tech giants in the AI field. In the future, the acceleration of AIGC commercialization and the improvement of popularity are expected to drive the performance improvement and development of related manufacturers such as AI chip and data industry chains in China. At the World economic forum back in 2020, Ren Zhengfei, the founder of Huawei, once indicated that the development of AI in China was still in its infancy. Now, we have to admit that the iteration of new technology is faster than we can ever imagine.

图片

Picture source from NetEase

03


The Usage and Development of ChatGPT in China

The three elements of AI: algorithm, computing power and data, together with a series of core technologies such as chips, 5G and 6G, are the cornerstone of the intelligent world. They digitize the physical world and enable the interconnection and perception of things. For example, Lensa, the recent top ranked AI APP, can generate images from text descriptions, which is derived from the commercial paid application Dall-E, the related plugin created by OpenAI.

图片

Picture source fromOpenAI

ChatGPT is a natural language processing AI tool launched by research laboratory of OpenAI. With GPT-3.5 model, ChatGPT has the capabilities of language understanding and text generation, it can also interact according to the context of the chat, very knowledgeable and accessible even when chatting about emotions and philosophy. As long as you learn to use ChatGPT, it can help you write resumes, emails, do PPT, copywriting, programming, composing lyrics and music, etc., as long as you ask, this black technology can help you easily.

图片

Picture source from: xitujuejin

AI has always been a hot field in China market. Products such as chatbots and visual recognition have found great applications in some commercial scenarios. At present, the technology of chatbots is still in the early stage of development, mainly applied to customer and marketing services. According to IDC, the global industry scale of AI reached $361.9 billion in 2021, with China accounting for $62.2 billion. In terms of the scale of investment and financing, the amount in the global AI industry in 2021 was US $71.47 billion, up 90.2% year-on-year, and China's was $20.32 billion, up 40.4% year-on-year. The emergence of AI products of AIGC such as ChatGPT with direct content creation ability has set off a capital frenzy and once again a career crisis.

At present, it may not be accessible to direct use of ChatGPT through OpenAI's official website in China. Domestic users can experience fast and free functions provided by some domestic mirror stations. Some programmers have developed apps similar to ChatGPT based on OpenAI's API (Application Program Interface) to facilitate domestic users' experience. Among the listed companies on the Science and Technology Innovation board of the stock market, two AI companies including Yuncong Technology have made full use of the underlying technology of ChatGPT.

04

How to Identify the Core Value of ChatGPT to Achieve your Commercial Monetization?

In its Future of Jobs Report 2020, the World Economic Forum predicts that 85 million jobs will be displaced by automation and technology advances by 2025, but 97 million new roles will be created. The advent of both metaverse and ChatGPT has left many of us anxious about being replaced by technology. However, it is not so simple for AI to truly replace human intelligence, and the intention of rapid development of technology was initially to help humans work more efficiently.

图片

Picture source fromXitujuejin

Sina technology of China test result shows that although ChatGPT has become more and more humanized in terms of interaction, due to the time limit of the system's acquisition of knowledge and data, the collected data can only be obtained up to 2021, and it does not have a real human multi-dimensional thinking and often will give seemingly fluent but wrong answers. But more radical predictions indicate that AI scientists will learn to iterate on their own, thus will not just cut costs but bring new knowledge to human. Whatever the future may hold, instead of worrying about it, it’s time to start studying how to use AI technologies such as ChatGPT for commercial monetization and bring value to real life.

Whether investors or entrepreneurs, you can integrate relevant AI technology and create your own application scenario for commercial monetization. As a link for optimal allocation of global resources, digital economy is becoming a key force to restructure resources, reshape economic structure and change the competitive landscape. The new infrastructure, also known as digital economy technology investment, can drive rapid market growth in the short term. As indicated by Ren Zhengfei, founder of Huawei "The development of the digital economy needs globalization to facilitate commercial monetization, and the momentum of digital economic globalization is unstoppable." With constant progress in computing power and algorithms, innovations in AI such as ChatGPT will help us achieve strategic goals of future growth. Click the link to learn more of What’s up in China´s Digital Economy? Trends and Opportunities.

With rich experience, Sirmione Consulting Group China-based team can provide market analysis and insights, assist you from virtual market presence, build your China business, establish partnership for you to accelerate sales and expansion, eventually achieve your sustainable growth in China.

20220728


share
Next:This is the last one
Prev:This is the first article