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Alibaba and ByteDance Dominate China’s Growing GenAI Infrastructure Market, SCMP Reports

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Alibaba and ByteDance Dominate China’s Growing GenAI Infrastructure Market, SCMP Reports

Alibaba Group Holding (NYSE:BABA), along with TikTok owner ByteDance and AI specialist SenseTime, are leading the generative AI (GenAI) infrastructure services market in China, according to IDC.

SCMP reports that these three companies collectively held over 50% of the market in the second half of 2023.

Since the release of OpenAI’s ChatGPT in November 2022, Mainland China has become a global leader in GenAI adoption, claims the report.

Also Read: Nvidia Absent At China’s AI Show, Chinese GPU Makers Step Up: Report

According to a SAS and Coleman Parkes Research survey, 83% of Chinese respondents reported using GenAI, significantly higher than the global average of 54%.

The intelligent computing market in China, including GenAI and non-GenAI segments, grew nearly 86% to reach 11.4 billion yuan ($1.6 billion). GenAI infrastructure services providers contributed almost 60% of this growth.

Beijing aims to increase China’s share of AI computing power to 35% by the end of next year, up from 25.4% in mid-2023.

Alibaba remains invested in its AI endeavors to unlock value in its cloud, e-commerce, and logistics segments.

Price Action: BABA shares traded higher by 2.17% at $77.66 at the last check on Thursday.

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Photo via Pixabay.

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