Guangdong's AI industry hits US$25 billion as it competes with Beijing and Shanghai

Guangdong's AI industry reaches 180 billion yuan in 2023. Shenzhen contributes 44% of the province's AI industry valuation. Beijing leads China with an AI industry output value exceeding 250 billion yuan in 2023.

Credit: Xinhua

This growth signifies Guangdong's efforts to compete with Beijing and Shanghai in the dynamic AI landscape.

A significant portion of this growth is attributed to Shenzhen, the tech hub neighbouring Hong Kong, which contributed 80 billion yuan, representing 44% of the total valuation. The state-backed Shenzhen Special Zone Daily report, republished by the Shenzhen government, highlighted these figures.

In 2022, Guangdong was home to approximately 489,000 AI-related companies, including over 1,200 publicly traded enterprises, according to data from the provincial department of industry and information technology.

Despite this progress, Guangdong's AI industry still trails behind Beijing and Shanghai. Beijing, with its strong start-up ecosystem and top universities, boasts the largest AI industry in China, surpassing 250 billion yuan in output value in 2023. The city also leads in the development of large language models (LLMs).

Shanghai, on the other hand, saw its AI industry output reach nearly 150 billion yuan last year, hosting a total of 1,100 AI companies, according to official government data.

As part of China's broader strategy to establish regional AI hubs, Shenzhen is intensifying its AI efforts. This initiative aligns with President Xi Jinping's vision to modernise industries through AI development.

The country's closed-off internet environment has provided domestic AI companies with room to grow without foreign competition. Notably, OpenAI's ChatGPT, a catalyst for the recent surge in large language model development, is not accessible in China. Domestic firms like Baidu, SenseTime, iFlyTek, and Alibaba Group Holding have stepped in with alternative solutions.

Guangdong, known for its manufacturing prowess and hosting tech giants like Huawei Technologies, Tencent Holdings, and DJI, aims to integrate AI with manufacturing. The provincial government plans to build a 300 billion yuan AI industry by next year, with a target of 440 billion yuan by 2027. This growth strategy includes advancements in intelligent robotics, software development, and Chinese language data sets.

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• Guangdong's AI industry reaches 180 billion yuan in 2023

• Shenzhen contributes 44% of the province's AI industry valuation

• Beijing leads China with an AI industry output value exceeding 250 billion yuan in 2023

Source: SCMP