OpenAI’s GPT-4 Turbo likely to spark more competition among Chinese rivals

Microsoft-backed OpenAI’s launch of its latest artificial intelligence (AI) large language model (LLM) GPT-4 Turbo at the start-up’s first developer event earlier this week is expected to widen the gap with Chinese rivals, according to industry insiders and analysts.

The upgrades to GPT-4 Turbo, the underlying technology for OpenAI’s popular conversational bot ChatGPT, include a larger memory to remember up to 300 pages of text in a single prompt, cheaper pricing for developers, and a knowledge cut-off date up to April 2023, said chief executive Sam Altman.

GPT-4 Turbo is expected to kick-off another flurry of activity as Chinese competitors, such as Baidu and Alibaba Group Holding, race to catch up, according to Xu Liang, a Hangzhou-based entrepreneur in the AI sector.

“Big Tech firms and start-ups will need to invest more to keep pace [with OpenAI’s progress],” Xu said in an interview with the Post on Tuesday. “Otherwise their products – if they fall too far behind [OpenAI’s GPT-4 Turbo] – will disappoint users.”

Xu said while some companies may sharpen their focus on developing proprietary [foundational] models, others might decide to build industry-specific models with bespoke capabilities for different industries.

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Lu Yanxia, research director at IT consultancy International Data Corp, said OpenAI’s GPT-4 Turbo will “inspire and spur” local Big Tech firms to further invest in areas such as natural language processing, a critical technology that helps AI chatbots understand and process complex human languages.

Since OpenAI launched its groundbreaking ChatGPT a year ago governments have touted the potential of generative AI to transform traditional industries while also warning of its dangers if not properly regulated. At present, ChatGPT and Google’s Bard are not available on the mainland, prompting Chinese competitors to develop alternatives.

At this year’s World Internet Conference, also known as the Wuzhen Summit which runs from November 8 to November 10, companies including South China Morning Post owner Alibaba, search engine giant Baidu, and AI specialist iFlyTek are expected to demonstrate their latest capabilities in the generative AI space.

Chinese President Xi Jinping repeated his calls for the safe development of AI in a video speech he delivered to the event on Wednesday, reiterating the Chinese government’s stance that while AI should be leveraged to power economic growth, potential negative consequences must be avoided.

ChatGPT, Bard and other foreign chat bots remain blocked due to Beijing’s focus on internet security, although some netizens still access them via virtual private networks.

“Due to internet restrictions, stable access to [OpenAI’s latest LLM] will continue to be an issue,” said Xu Liang. “Enterprise-level applications of LLMs [in China] will therefore be reliant on domestic LLMs.”