CITIC Securities’ latest report is optimistic about the development prospects of China’s artificial intelligence industry in the next 1-2 years, predicting that it will bring considerable excess returns. The report pays special attention to OpenAI's transformation into a public benefit company (PBC), believing that this move will promote OpenAI's profitability and cooperation with more partners, such as Google Cloud. The report also analyzes the current situation of Chinese AI companies rapidly catching up with their American counterparts, as well as the market environment with increasingly fierce competition for talents and funds, and points out that this will bring opportunities for Chinese AI companies to rapidly grow in market share and revenue.
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In the past, OpenAI adopted a model of a "limited profit company" controlled by a "non-profit organization". This unique structure has been discussed in the industry. With this transformation into a public interest company, OpenAI Global has been able to better achieve profitability and external financing after a series of adjustments. At the same time, this change will also help OpenAI to develop more active cooperation with other partners besides Microsoft, such as Google Cloud.
With the in-depth application of artificial intelligence technology, it is expected that by 2025, the model capabilities of AI companies will reach new heights. In this process, competition for talent and funds will become increasingly fierce. However, this also means that AI companies will usher in opportunities for rapid growth in market share and revenue.
CITIC Securities also pointed out that US AI companies have achieved significant excess returns in the past two years, and Chinese AI companies are also rapidly following suit. Looking forward, they judged that China's artificial intelligence companies and related assets are expected to bring good excess returns in the next 1-2 years, which provides new opportunities for investors.
Highlights:
In the next 1-2 years, China's artificial intelligence industry is expected to bring significant excess returns.
OpenAI's transformation into a public interest company will help it achieve profitability and multi-party cooperation.
Chinese AI companies are rapidly following their American counterparts, with obvious opportunities for market share and revenue growth.
All in all, CITIC Securities' report paints a positive picture for the future development of China's artificial intelligence industry, provides important reference information for investors, and also highlights the huge potential and development opportunities of Chinese artificial intelligence companies in global competition. The transformation of OpenAI provides a new direction of thinking for the development of the industry.