OpenAI Ends API Services in Mainland China: Seizing the Opportunity for Alternatives to ChatGPT as Chinese Models Pursue Technology Monetization

In recent days, OpenAI's decision to suspend API services in mainland China has ignited extensive discussion. Major Chinese AI companies are quick to recognize this shift as an opportunity, announcing attractive migration incentives for enterprise users. Industry experts suggest that large models are approaching the apex of a technological hype cycle. OpenAI's exit from the API market in mainland China is viewed as a promising development for the growth and monetization of large model technology within the country.

Advanced AI Capabilities in Robotics

At the recent launch of Huawei Cloud’s Pangu Model 5.0, the humanoid robot “Kuafu,” equipped with advanced Pangu AI capabilities, showcased its remarkable features. Following simple spoken commands, Kuafu performed tasks such as object identification, interactive Q&A, giving high-fives, and serving water. This latest model version enables Kuafu to execute complex task planning with over ten steps, effectively generalizing across varied scenarios and managing multiple tasks concurrently. Additionally, the Pangu Model can produce customized training videos for the robot, expediting its learning in complex situations.

Entering New Domains

The advancement of large models has led to a range of parameter specifications tailored to diverse business needs. Pangu Model 5.0 offers parameters from billions to trillions, addressing different complexities—such as the billion-parameter version, optimized for smart applications on mobile devices and PCs. Companies are actively pursuing innovative avenues, enhancing the integration of large models across various vertical industries and fostering differentiated competition. For mid-sized tech firms and AI startups, targeting vertical markets with less competition is increasingly seen as a strategic move.

Industry Outlook: A Consolidated Future

In recent months, leading firms like ByteDance, Alibaba, Tencent, Baidu, and iFlyTek have announced substantial price cuts for their large models. The primary challenge for these companies is effectively monetizing their technology amid a landscape characterized by homogenized competition. Research forecasts indicate that by 2025-2026, the market will begin to consolidate, with dominant players solidifying their positions while weaker ones exit. By 2027-2028, the large model market is expected to concentrate, with 3 to 5 companies laying the foundation for China’s large model ecosystem. Vertical sectors are anticipated to become the focal point of fierce competition, with specific industry applications leading the way in 2023-2024. The landscape is expected to stabilize between 2025 and 2028, allowing new entrants from general fields to emerge in vertical domains, thereby nurturing a thriving ecosystem.