Chinese government officials urgently requested briefings from experts, including Tsinghua University professors, on the implications of generative AI technology. In response, China’s major tech firms and startups rapidly launched their own AI chatbots and large language models (LLMs) while registering them with the government. This initiative aims to keep American AI services from penetrating China’s vast internet market, which boasts over 1 billion users. Initially, a walled garden approach was deemed optimal until domestic companies could create competitive alternatives to Western AI products, especially after the rise of ChatGPT. Notable investor Zhu raised concerns about the profitability of solely developing LLMs. As 2025 progresses, perspectives on the capabilities of Chinese AI firms and the LLM market have evolved, suggesting a potential shift in strategy as these companies refine their technologies to better compete globally. This showcases a pivotal moment in the intersection of technology, regulation, and market competitiveness in China.
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