July 15, 2024
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Japan’s AI confusion sparks global competition – China slashes prices in high-tech showdown!

Japan’s AI confusion sparks global competition – China slashes prices in high-tech showdown!

As the summer season kicks off in Silicon Valley, the tech industry buzzes with conversations about AI and the upcoming US presidential election. However, amidst the party chatter, one key issue remains at the forefront – the lack of a concrete plan to govern the rapidly evolving field of artificial intelligence.

  1. The Call for Regulation: While the tech industry has traditionally shied away from regulation, the sentiment is shifting. As one AI startup founder expressed, "No industry can thrive without regulation in the long run. It’s mayhem." With AI becoming increasingly powerful, the US urgently needs a roadmap for governing this technology, a void left untouched by both Trump and Biden.
  2. The Role of Vice-president Harris: Following lackluster performances by President Biden in debates, the call for a new Democratic candidate has been growing. Vice-president Kamala Harris, actively involved in AI regulatory efforts, may hold the key to a clearer path to federal AI regulation if she were to ascend to the presidency.
  3. US-China Tech Competition: Despite the political landscape, Washington’s push to outcompete China in tech remains unchanged. Recent moves to restrict China’s access to American AI technologies, such as OpenAI blocking users from China, underscore the escalating tech competition between the two nations.

In a world where the commercialization of AI is still evolving, China witnesses a price war among AI model builders. Companies like Alibaba, Baidu, and ByteDance engage in fierce competition by slashing prices per million tokens. However, the sustainability of such price cuts when profitability remains uncertain raises pertinent questions about the future of AI development.

Despite geopolitical tensions between Washington and Beijing, Neil Shen, a prominent tech investor, defies the funding freeze to raise a record Rmb18bn fund for Chinese startups. With increased firepower to invest in sensitive sectors, Shen’s move signifies a continued push to bolster China’s tech industry amidst global uncertainties.

While generative AI tools like ChatGPT and Microsoft CoPilot have become ubiquitous, Japan lags behind in individual adoption of generative AI, citing lack of knowledge and necessity as primary reasons for low usage rates. Surprisingly, only 9.1% of people in Japan use generative AI compared to over 40% in China.

In a bid to expand its EV market presence, China’s BYD plans to invest $1bn in Turkey to establish an EV and plug-in hybrid vehicle factory. This investment marks the first EV factory owned by a foreign manufacturer in Turkey and signifies BYD’s strategic move to penetrate the European market amidst escalating trade tensions with the EU.

Amidst these global developments, the tech world continues to evolve rapidly. Stay updated with trending tech news through our suggested reads, covering topics from AI chips in China to the impact of Saudi Arabia’s MBC on the Middle East streaming market.

As the tech industry navigates through turbulent waters of competition and regulation, the future of AI development stands at a crossroads. Stay informed, stay engaged, and let’s shape the technological landscape together.

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