OpenAI’s decision to ban China-based developers from accessing its services is expected to boost the growth of the Chinese artificial intelligence (AI) sector, according to industry insiders and analysts. This move is seen as an opportunity for local AI model builders to gain a bigger share of the market, as users in China may turn to domestic alternatives. Despite not officially offering its services in China, developers have been using VPNs to bypass restrictions and could access OpenAI through its API.
Chinese tech firms have quickly responded to the ban by offering migration options and incentives to attract local customers. Companies like Zhipu AI, Alibaba, Baidu, and others are offering perks such as discounts, freebies, and technical support to entice users to switch to their platforms. This competition in the local industry is reflected in the number of home-grown LLMs in China, with over 200 models approved for public release as of March.
The response from Chinese AI players highlights the fierce competition in the industry, with some companies even engaging in price wars to attract customers. This situation underscores the growth and potential of the Chinese AI sector, which is expected to benefit from OpenAI’s decision to restrict access to its services for China-based developers.
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