(Yicai) Dec. 14 -- As generative artificial intelligence entered a new development stage, more AI startups are expected to be established in China, accelerating the commercial use of AI, according to a report by the Yicai Research Institute, a non-profit independent think tank backed by Yicai Media Group.

More and more domestic AI models will be released in the future, according to the 2023 Digital China Annual Report unveiled at Yicai Media’s 2023 Capital Annual Conference yesterday. Behind AI models, there is not only the traffic entrance but also the operating system with the entire set of operating capabilities, including supercomputing capabilities, the report noted.

AI chips, optical modules, and other computing core hardware equipment have become the main competitive point of the AI industry chain, according to the report.

China is the world’s second-largest computing power, but there is still a big gap between domestic AI computing power, especially for the training of large language models, and the global development trend. One of the main reasons behind this gap is the shortage of AI chips, which are a key element for building AI computing power.

With the gradual expansion of AI applications, AI intelligent computing centers’ nonblocking networks need high-speed optical modules, a core component for interconnection, the report said. A new round of upgrading cycles has begun to meet the demand for improved optical modules.

Yicai Media compiled the 2023 Digital China Annual Report after visiting more than 100 listed companies or digital factories in important Chinese economic regions, such as Guangdong province, Hong Kong, Macao, the Beijing-Tianjin-Hebei cluster, and the Yangtze River Delta Region. The report analyzes the changes in industrial operation methods brought about by digital technologies, including AI, cloud computing, big data, and the internet of things, as well as the benefits of industrial digitalization.

Editor: Futura Costaglione