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Jack Ma-backed Ant Group touts AI breakthrough using Chinese chips

Jack Ma-backed Ant Group touts AI breakthrough using Chinese chips

  • 25.03.2025 02:47
  • hindustantimes.com
  • Keywords: Ant Group, Alibaba Group Holding Ltd., Huawei Technologies Co

Ant Group, backed by Jack Ma, uses Chinese chips from Alibaba and Huawei to cut AI training costs by 20%. Its Mixture of Experts approach optimizes model efficiency, matching Nvidia's results while reducing expenses. The company aims to apply this technology in its Ling-Plus and Ling-Lite models for healthcare and finance applications.

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Estimated market influence

Ant Group

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Ant Group is using Chinese chips to reduce costs by 20% in AI model training, positioning itself as a competitor in the AI race between Chinese and US companies.

Alibaba Group Holding Ltd.

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Alibaba provides semiconductors to Ant Group for cost reduction in AI training.

Huawei Technologies Co

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Huawei supplies chips to Ant Group, aiding in reducing costs and enhancing AI capabilities.

Context

Business Insights and Market Implications

  • Ant Group AI Breakthrough: Ant Group, backed by Jack Ma, claims to have reduced AI training costs by 20% using Chinese semiconductors from Alibaba and Huawei.
  • Performance Comparison: The chips' performance is comparable to Nvidia's H800 chips, challenging the dominance of US-based tech firms in AI hardware.
  • Mixture of Experts (MoE) Models: Ant uses MoE models to divide tasks into smaller data sets, improving efficiency and reducing costs.
  • Cost Reduction Details: Training 1 trillion tokens cost 6.35 million yuan ($880,000), but optimized approaches reduce this to 5.1 million yuan using lower-spec hardware.
  • Competitive Dynamics: Ant's AI models reportedly outperformed Meta in certain benchmarks, highlighting the growing competition between Chinese and US tech companies.
  • Strategic Moves: Ant plans to deploy its AI solutions (Ling-Plus and Ling-Lite) in healthcare and finance sectors, positioning itself as a key player in industrial AI applications.
  • Market Trends: The shift toward cost-effective AI development aligns with global trends, particularly the rise of MoE models and alternative hardware providers.
  • Long-Term Effects: This move could accelerate China's AI capabilities, potentially reducing reliance on foreign technology and reshaping the global tech landscape.
  • Regulatory Implications: As Ant Group expands its AI applications in finance and healthcare, regulatory scrutiny may increase, particularly in data privacy and algorithmic governance.