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China’s AI Startups Get Boost from OpenAI’s Latest LLM

Sam Marten – Tech & AI Writer by Sam Marten – Tech & AI Writer
April 30, 2025
in Cloud Computing
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China’s AI Startups Get Boost from OpenAI’s Latest LLM
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Introduction to AI Development in China

At the Apsara Conference in Hangzhou, hosted by Alibaba Cloud, China’s AI startups emphasized their efforts to develop large language models. The companies’ efforts follow the announcement of OpenAI’s latest LLMs, including the o1 generative pre-trained transformer model backed by Microsoft. The model is intended to tackle difficult tasks, paving the way for advances in science, coding, and mathematics.

The Importance of Large Language Models

During the conference, Kunal Zhilin, founder of Moonshot AI, underlined the importance of the o1 model, adding that it has the potential to reshape various industries and create new opportunities for AI startups. Zhilin stated that reinforcement learning and scalability might be pivotal for AI development. He spoke of the scaling law, which states that larger models with more training data perform better. “This approach pushes the ceiling of AI capabilities,” Zhilin said, adding that OpenAI o1 has the potential to disrupt sectors and generate new opportunities for startups.

OpenAI’s o1 Model

OpenAI has also stressed the model’s ability to solve complex problems, which it says operate in a manner similar to human thinking. By refining its strategies and learning from mistakes, the model improves its problem-solving capabilities. Zhilin said companies with enough computing power will be able to innovate not only in algorithms, but also in foundational AI models. He sees this as pivotal, as AI engineers rely increasingly on reinforcement learning to generate new data after exhausting available organic data sources.

Challenges for Start-ups

StepFun CEO Jiang Daxin concurred with Zhilin but stated that computational power remains a big challenge for many start-ups, particularly due to US trade restrictions that hinder Chinese enterprises’ access to advanced semiconductors. “The computational requirements are still substantial,” Daxin stated. An insider at Baichuan AI has said that only a small group of Chinese AI start-ups — including Moonshot AI, Baichuan AI, Zhipu AI, and MiniMax — are in a position to make large-scale investments in reinforcement learning.

More from the Apsara Conference

Also at the conference, Alibaba Cloud made several announcements, including the release of its Qwen 2.5 model family, which features advances in coding and mathematics. The models range from 0.5 billion to 72 billion parameters and support approximately 29 languages, including Chinese, English, French, and Spanish. Specialised models such as Qwen2.5-Coder and Qwen2.5-Math have already gained some traction, with over 40 million downloads on platforms Hugging Face and ModelScope.

New Product Releases

Alibaba Cloud added to its product portfolio, delivering a text-to-video model in its picture generator, Tongyi Wanxiang. The model can create videos in realistic and animated styles, with possible uses in advertising and filmmaking. Alibaba Cloud unveiled Qwen 2-VL, the latest version of its vision language model. It handles videos longer than 20 minutes, supports video-based question-answering, and is optimized for mobile devices and robotics.

Conclusion

In conclusion, the Apsara Conference highlighted the growing importance of large language models in China’s AI development. With the announcement of OpenAI’s latest LLMs and the release of Alibaba Cloud’s new models, it is clear that the field is rapidly advancing. However, challenges such as computational power and access to advanced semiconductors remain a significant hurdle for many start-ups.

FAQs

Q: What is the o1 generative pre-trained transformer model?
A: The o1 model is a large language model developed by OpenAI, backed by Microsoft, intended to tackle difficult tasks and pave the way for advances in science, coding, and mathematics.
Q: What is the significance of reinforcement learning in AI development?
A: Reinforcement learning is a crucial aspect of AI development, as it allows models to learn from mistakes and improve their problem-solving capabilities.
Q: What are the challenges faced by AI start-ups in China?
A: AI start-ups in China face challenges such as limited access to advanced semiconductors due to US trade restrictions, making it difficult to meet computational requirements.
Q: What new products were released by Alibaba Cloud at the Apsara Conference?
A: Alibaba Cloud released its Qwen 2.5 model family, a text-to-video model, and Qwen 2-VL, the latest version of its vision language model.

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Sam Marten – Tech & AI Writer

Sam Marten – Tech & AI Writer

Sam Marten is a skilled technology writer with a strong focus on artificial intelligence, emerging tech trends, and digital innovation. With years of experience in tech journalism, he has written in-depth articles for leading tech blogs and publications, breaking down complex AI concepts into engaging and accessible content. His expertise includes machine learning, automation, cybersecurity, and the impact of AI on various industries. Passionate about exploring the future of technology, Sam stays up to date with the latest advancements, providing insightful analysis and practical insights for tech enthusiasts and professionals alike. Beyond writing, he enjoys testing AI-powered tools, reviewing new software, and discussing the ethical implications of artificial intelligence in modern society.

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