Chinese AI firms form alliances to build domestic ecosystem amid US curbs

In a bold move to bolster its artificial intelligence landscape, China’s AI companies have established two significant alliances aimed at creating a self-sufficient ecosystem. This initiative comes as a response to the U.S. government’s export limitations on advanced Nvidia chipsets, compelling local firms to innovate without relying on foreign technology. The announcements were strategically made during the World Artificial Intelligence Conference in Shanghai, which concluded recently. Here, attendees witnessed the launch of numerous cutting-edge products, including a powerful AI computing system by Huawei that is believed to compete directly with Nvidia's top offerings. Among the highlights were various consumer-oriented innovations, such as digital AI glasses designed to enhance user experiences. The newly formed "Model-Chip Ecosystem Innovation Alliance" unites Chinese developers of large language models with AI chip manufacturers. Zhao Lidong, CEO of Enflame, one of the prominent chipmakers involved, described the alliance as a groundbreaking ecosystem that integrates the entire technology chain, from chips to models and infrastructure. Other notable participants in this alliance include Huawei, Biren, and Moore Threads, all of which have faced U.S. sanctions limiting their access to advanced technologies. Additionally, the Shanghai General Chamber of Commerce AI Committee has emerged to further advocate for the integration of AI technology into industrial processes. Key members of this initiative include SenseTime, which has shifted its focus from facial recognition to large language models, alongside other developers like StepFun and MiniMax, as well as chipmakers Metax and Iluvatar CoreX. One of the standout products at the conference was Huawei's CloudMatrix 384, featuring 384 of its latest 910C chips, which has reportedly outperformed Nvidia's GB200 NVL72 in several benchmarks, according to insights from U.S. research firm SemiAnalysis. This showcases Huawei's ability to leverage system-level innovations to enhance performance despite individual chip limitations. In addition, at least six other Chinese tech firms presented similar "clustering" chip technologies. Metax unveiled an AI supernode with 128 C550 chips, specifically designed to meet the demands of large-scale liquid-cooled data centers. Other exciting announcements included Tencent's launch of its open-source Hunyuan3D World Model 1.0, allowing users to create interactive 3D environments via text or image prompts. Baidu also introduced its next-generation "digital human" technology, enabling businesses to develop virtual livestreamers by replicating human voice and body language from just a brief video sample. Lastly, Alibaba revealed its Quark AI Glasses, powered by its Qwen AI model, set to hit the market in China by the end of 2025. These glasses will facilitate navigation through the tech giant’s map service and allow users to make payments via Alipay using voice commands to scan QR codes.