Development Environment and Opportunities of China's AI Industry: Exploring Directions for AI Commercialization
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As the core driving force of a new round of industrial transformation, artificial intelligence has become a new focus of international competition and a new engine for economic development. Currently, AI is accelerating its deep integration with the real economy, facilitating industrial transformation and upgrading. After years of continuous accumulation, China has made significant progress in the field of artificial intelligence, with AI theories and technologies becoming increasingly mature, applications expanding, and corresponding business models evolving.
This year, AI has developed rapidly, with tech giants launching a "hundred-model battle." Data shows that as of the end of October, 238 large AI models have been released domestically. Many institutions believe that due to factors such as the accelerated iteration of AI applications, computing power demand continues to grow, potentially triggering a medium-to-long-term price surge. The performance boost from the computing power sector will be reflected quarter by quarter, and the localization of AI computing power will also accelerate.
Development Environment and Opportunities of China's AI Industry
Recently, the computing power industry has repeatedly reported price increases. In fact, these price hikes were foreshadowed earlier. Due to tight server supply, the prices of computing power servers have risen significantly, and the cost of providing computing power leasing services to customers has also increased accordingly.
On November 16, a disclosure by China Bester Group Telecom regarding the signing of a computing power service framework contract showed that the company recently signed a technical service framework agreement with Beijing Zhongke Xinyuan Technology Co., Ltd. The company will provide a total of 1920 PAI computing power technical services, with a total contract value of 345.6 million yuan, at a unit price of 180,000 yuan/P/year. However, it was noted that a computing power service contract disclosed by China Bester Group Telecom on September 7 showed a unit price of 120,000 yuan/P/year. Compared to this, the computing power service price in the November contract increased by 50%.
On November 14, Huina Technology released an announcement about plans to increase prices for some computing power service businesses. Many A-share companies have also disclosed their intentions to raise prices recently through securities research reports or investor interaction platforms. For example, on November 7, cloud service provider Qingyun Technology responded to investor inquiries on the Shanghai Stock Exchange e-platform, stating that the company would raise prices in response to recent market supply and demand changes. On November 17, Runjian Co., Ltd. stated on the Shenzhen Stock Exchange interactive platform that computing power leasing prices are affected by factors such as market demand and cost fluctuations, and the company would adjust leasing prices accordingly.
Analysts at Guosheng Securities believe that, given international factors and the accelerated iteration of AI applications, this collective price increase in computing power is not a short-term fluctuation but the beginning of a medium-to-long-term price surge.
In the secondary market, the stock prices of computing power concept stocks have also continued to rise. Data shows that as of November 20, the AI computing power index has accumulated a gain of over 13%, with a year-to-date increase of over 72%, ranking fifth among 278 concept indices.
Commercialization Directions of Artificial Intelligence
Currently, the artificial intelligence-related industries are continuously advancing, frequently bolstered by favorable policy support. Shanghai recently released the 'Shanghai Further Promotes New Infrastructure Construction Action Plan (2023-2026),' which emphasizes accelerating the development of high-performance computing and high-quality data infrastructure to support AI large models and blockchain innovation applications. Guangdong has also issued documents supporting Guangzhou and Shenzhen in advancing the construction of national next-generation AI innovation development pilot zones and national AI innovation application pilot zones.
A recent Shanghai Securities research report pointed out that tracking the development of generative AI should prioritize the cost-effectiveness of commercialization, especially whether there is sufficient computing power infrastructure to support its subsequent development. In the process of commercialization, the growth potential in the early-stage computing power infrastructure sector will be relatively obvious and highly certain. Later, as software applications mature, priority should be given to high-growth sectors with strong demand certainty, where upstream and downstream linkages are tight, and low-valuation companies with high industry barriers are present.
China's AI Core Industry Scale Reaches 500 Billion Yuan
This year, large models represented by ChatGPT and the AI wave have profoundly transformed countless industries. Data from the Ministry of Industry and Information Technology shows that China's AI core industry has reached a scale of 500 billion yuan, with over 4,400 enterprises. Innovations such as AI chips, development frameworks, and general large models continue to emerge.
From a policy perspective, from January to October this year, many regions in China have introduced specialized AI policies, proposing goals such as 'building a world-class AI industrial cluster' and 'establishing a fund group with a scale of 100 billion yuan.'
The latest data indicates that China's AI core industry continues to grow, with over 4,400 enterprises. The deep integration of AI and manufacturing has effectively promoted the digital, intelligent, and green transformation of the real economy. Currently, nearly 10,000 digital workshops and smart factories have been built nationwide.
Currently, the AI industry is entering a period of active innovation and application expansion.
In the fiercely competitive market, the ability of enterprises and investors to make timely and effective market decisions is the key to success. The AI industry report compiled by China Research Network provides a detailed analysis of the development status, competitive landscape, and supply-demand dynamics of China's AI industry. It examines the sector's opportunities and challenges through the lens of policy environment, economic conditions, social factors, and technological advancements. The report also uncovers latent market demands and potential opportunities, offering strategic investors precise market intelligence and scientific decision-making references for optimal investment timing. It serves as a valuable planning tool for corporate leadership and provides significant reference value for government agencies.