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Tom’s Hardware
Tom’s Hardware
Technology
Jowi Morales

Local Chinese firms rush to fill the AI void after OpenAI abandons China market — Tencent, Baidu, and Alibaba sweeten LLM offers

China.

OpenAI made a surprise announcement to its Chinese users that it will leave the market next week, July 9, 2024. Although this move will negatively impact companies relying on access to OpenAI's API for their products, it will also drive innovation and development in local AI models. DigiTimes Asia reported that local tech companies like Tencent, Baidu, and Alibaba are already moving into the market, offering "migration" plans and discounts to affected users.

Another large language model (LLM) firm, Zhipu, has even offered a special migration plan that includes training, consulting services, and tokens like those used by developers on OpenAI. Companies that rely on LLMs need to replace OpenAI quickly, thus pushing Chinese firms to step up to the plate and deliver a viable alternative.

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