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Ernie Bot, Baidu’s flagship generative artificial intelligence product, has become the go-to option for millions in China, akin to ChatGPT in many parts of the world. Since its launch, Ernie Bot is said to have amassed over 300 million users, and its API handles a staggering 500 million queries daily, reflecting its deep integration across the country.
In a strategic move to solidify its position in the Chinese market, Baidu announced on June 28 the upgraded Ernie 4.0 Turbo model. This advanced version promises faster responses and superior performance compared to its predecessor and will soon be available via web, app, and API interfaces.
The company also introduced PaddlePaddle 3.0, the latest version of its deep learning platform. The upgraded platform integrates advanced core technologies such as auto-parallel architecture, compiler optimization, and multi-hardware compatibility. These enhancements are designed to boost performance and deliver optimal outcomes for large models, supporting what Baidu claims to be over 14 million developers and 370,000 businesses and institutions.
Baidu is among the fastest movers in China regarding AI developments. It was <a href="https://kr-asia.com/baidus-ernie-bot-among-eight-chinese-llm-products-approved-for-public-launch">one of the first entities</a> to receive approval from Chinese authorities to launch large language model (LLM) products for domestic use in August 2023, having spent years developing the foundational model, Wenxin LLM.
Subsequently, its AI capabilities have gained international traction. In January 2024, Samsung Electronics <a href="https://kr-asia.com/samsung-to-integrate-baidus-ernie-bot-in-latest-galaxy-s24-smartphones">announced</a> the integration of Ernie Bot into its flagship Galaxy S24 smartphone series in China, marking the first AI-powered product from Samsung leveraging Baidu's technology. Apple, Samsung’s longtime rival, soon after entered discussions with Baidu for a <a href="http://ftp.kr-asia.com/generative-ai-could-prove-vital-for-apple-revival-in-china">similar arrangement</a> with its iPhone series.
Additionally, other tech giants like Oppo, Vivo, Xiaomi, Lenovo, and Nio have integrated Ernie’s API into their devices and services.
whereRelatedArticle
The regulatory landscape in China has significantly shaped the AI market. In February 2023, Chinese regulators <a href="https://kr-asia.com/baidu-to-integrate-chatgpt-style-ernie-bot-across-all-operations">instructed</a> domestic companies not to offer the ChatGPT service, citing concerns over the AI-powered chatbot’s uncensored replies. This led to a requirement for tech companies to report to regulators before launching similar services.
OpenAI has since announced plans to block access to its services from mainland China starting July 9, 2024. This decision will impact numerous Chinese enterprises leveraging OpenAI's technology.
Financially, Ernie exemplifies Baidu’s shift toward an AI-first business model, which has shown signs of paying off.
The company <a href="https://kr-asia.com/baidu-posts-promising-q1-financials-amid-ai-driven-uptick">reported</a> revenue of RMB 31.5 billion (USD 4.3 billion) and a net profit (non-GAAP) of RMB 7.011 billion (USD 970 million) for the first quarter of 2024, marking a 22% year-on-year increase. During the Q1 2024 earnings call, co-founder, chairman, and CEO Robin Li emphasized this pivot from an internet-centric business to an AI-driven enterprise as reflective of Baidu’s long-term vision and strategic direction.

Baidu deepens foothold in Chinese AI market with Ernie 4.0 upgrade

China Tech

Deep Tech

China

Artificial intelligence

baidu

… of these panels has now reached 250,000 square meters, producing nearly 26 million kilowatt-hours of green electricity, reducing 25,000 tons of carbon emissions—a significant figure. By the end of 2023, we had also invested in an energy storage station with a design capacity of 42,000 kilowatt-hours, the largest in Anhui Province.
<h3>36Kr: In terms of industry trends, tire sizes are getting larger, and performance requirements are increasing. Electric vehicles have new demands for tires. What challenges does this bring to Continental?</h3>
XQ: New energy vehicles (NEVs) have unique characteristics. On one hand, larger battery packs increase vehicle weight. On the other hand, vehicle designs are becoming more avantgarde. As a visually exposed component, tires play an essential role in vehicle design, so their sizes are also increasing.
At the same time, EVs indeed place new demands on tires. The instant high torque of electric motors requires higher performance tires. The quietness of electric motors makes tire and road noise more apparent, necessitating improved tire quietness.
Under these conditions, we need sufficient technical support for continuous production of large-size tires. From the initial 20-inch to 22-inch, and possibly 23-inch in the future, the challenges in product R&amp;D, manufacturing processes, and rigor are significant.
Beyond tire size, ensuring better braking safety under high torque conditions is crucial. While reducing noise and maintaining comfort, providing stable braking performance for different driving conditions requires excellent manufacturing processes and comprehensive strength in technical R&amp;D, product process management, and quality control.
For new OEM demands, we have introduced new tire patterns like eContact. Besides performance, we focus on reducing rolling resistance, which is closely related to increasing electric vehicle range.
<h3>36Kr: What’s the purpose behind the fourth expansion of the factory? Is it an extension of the previous three phases or a completely new plan? Moreover, most tire manufacturers in China have at least two factories—why does Continental have only one, and only in Hefei?</h3>
JW: Continental CEO Nikolai Setzer mentioned that, due to supply shortages in both retail and original equipment markets, we decided to further invest and expand in the Chinese market. As for why Hefei was chosen over other cities, the success of a factory or enterprise depends on several factors.
Firstly, our market share and strategic positioning in China are critically important. Secondly, it depends on the hard work and dedication of local employees. Thirdly, the cooperation and support from partners are essential.
All of this is based on the local environment. We must commend the business environment in Hefei. Support from government departments has strengthened Continental's determination to continue investing. We will continue to expand investment in Hefei in the future.
<h3>36Kr: Continental has 28 R&amp;D centers in China. What is the layout for tire R&amp;D? Are there any future plans, such as building more test tracks?</h3>
XQ: We have established a tire R&amp;D center in Hefei and are leveraging other internal resources for more trials, such as using test tracks owned by Continental Automotive. In the future, we will also have more attempts in the aftermarket to meet the needs of more niche markets.
<h3>36Kr: At the Beijing Auto Show this year, 16% of new cars came equipped with Continental tires as standard. How did Continental achieve such results, and how will it expand its advantages in the future?</h3>
XQ: In the NEV market, we have indeed made significant progress, but it wasn't easy. To give an analogy, supplying OEMs is like a triathlon—it requires patience, explosiveness, and long-term determination. This growth is backed by excellent products, reliable quality, a mature and complete system, and our continuous investment in China over the past 15 years.
<h3>36Kr: The highly competitive Chinese automotive market poses greater price challenges for suppliers. How does Continental respond?</h3>
ET: Price pressure from vehicle sales to end users directly impacts the supply chain. For Continental, we choose to continue enhancing our technological leadership, especially how high-tech products maintain high quality and consistency in mass production.
On the other hand, from product innovation, R&amp;D, and production to services, we aim to fully localize our industrial and value chain. This not only directly reduces costs but also enhances our flexibility.
<h3>36Kr: For customers like Xiaomi Auto, where actual demand exceeds forecasted production, how does Continental prepare for delivery capabilities?</h3>
ET: The market is dynamic, and few car companies can give us very precise monthly production plans. Some can only provide current quarterly demand. We choose to enhance the flexibility of our factory capacity to cope with such changes.
However, from the perspective of the entire supply chain, like semiconductor chip suppliers, their capacity planning and delivery adjustments are slower. Enhancing delivery capabilities requires efforts from the entire industry, not just tier-one suppliers like Continental.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/2827897317493254">article</a> was written by Xu Caiyu for 36Kr.

Localization key as price wars hit supply chain, says Continental China’s CEO Enno Tang

Logistics

… cost-effectiveness, and even brand appeal to attract consumers.
The prospectus indicates that, in the next two years, Neta plans to launch one new model based on the high-end Shanhai platform and two new models based on the affordable Yunhe platform. Adhering to the mass market means Neta will face fiercer competition. Nio founder and CEO William Li said that Nio aims to launch the first model of its third brand, codenamed Firefly, at a price point below RMB 200,000 (USD 27,520) by the first half of 2025. Xpeng plans to release the second model of its Mona series in 2025 and hopes to price it below RMB 150,000 (USD 20,640). These models will inherit their parent brands' technological and channel advantages, challenging existing market players.
R&amp;D requires significant funding, and Neta is expanding its domestic and international sales systems to increase revenue. According to the prospectus, by the end of last year, Neta had 539 domestic stores, contributing RMB 11.935 billion (USD 1.64 billion) in revenue for 2023.
In overseas markets, Neta's revenue was RMB 240 million (USD 33 million) in 2022, reaching RMB 1.62 billion (USD 223 million) in the following year, a 573.2% year-on-year increase. In 2022-2023, Neta's overseas revenue accounted for 1.8% and 12% of annual sales revenue, respectively.
Neta added in the prospectus that it will further invest in the Southeast Asian market and expand into Latin America, the Middle East, and Africa. Neta's factories in Thailand and Indonesia began production in the first half of this year, with the Malaysian factory starting construction in January. In addition to factory construction, Neta is also expanding its overseas dealer network. As of December 31, 2023, Neta had established cooperation with about 100 dealers in 28 countries and regions overseas.
However, targeting both domestic and international markets concurrently may not be the best choice for Neta's current situation. Neta's data shows that, in the first five months of 2024, Neta exported 16,458 vehicles, ranking first in export volume among new car-makers. However, its sales in the first five months only accounted for 14.52% of its annual target, with export volume achieving 16.46% of its export target.
Currently, Neta holds only 1.2% of the domestic NEV market share. With limited time and funds, and the need for high-cost investments in both domestic and international markets, Neta faces significant challenges. To tell a more grandiose story, Neta must first increase sales and strengthen its cash flow. Only then will it have the opportunity to plan for the future.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/2837931592190596">article</a> was written by Tian Zhe for 36Kr.

Hozon eyes Hong Kong IPO for lifeline amid price war in China

Transportation

Electric Vehicles

Mobility

Hozon

… company plans to close the acquisition of online education firm Udacity and expand its offline presence, investing USD 30 million to set up ten global campuses.</li>
<li aria-level="1"><a href="https://www.smartworksoffice.com/">Smartworks</a>, a Gurugram-based office space provider, has raised INR 1.68 billion (USD 20.1 million) from various investors including Keppel, Ananta Capital Ventures Fund I, Plutus Capital, family trusts, and high-net-worth individuals. The funds will be used for growth, expansion, and general corporate expenses. —Entrackr</li>
</ul>
whereRelatedArticle
<h3>Hubble, Perplexity AI, Etched, and more led last Friday’s headlines:</h3>
<ul>
<li aria-level="1"><a href="https://hubble.build/">Hubble</a>, a technology company serving the built environment sector, secured a USD 5 million private debt facility from AlteriQ Global, an Asia-focused private credit investment firm. This funding will accelerate the growth of its financial services division.</li>
<li aria-level="1">Perplexity AI, an artificial intelligence company, is finalizing an investment of USD 10–20 million from SoftBank Group’s Vision Fund 2. This deal is expected to value the company at USD 3 billion and forms part of a larger USD 250 million funding round.</li>
<li aria-level="1"><a href="https://www.etched.com/">Etched</a>, an AI chip startup, raised USD 120 million in a Series A funding round to further develop its specialized chip, Sohu. Backers of the round include former PayPal CEO Peter Thiel and Replit CEO Amjad Masad.</li>
</ul>
If there are any news or updates you'd like us to feature, get in touch with us at: <a href="mailto:hello@kr-asia.com">hello@kr-asia.com</a>.

Deals in brief: Jirnexu to acquire MoneyHero’s Malaysian arm, Xurya receives additional USD 55 million, ten China and India deals, and more

Venture Capital

Private Equity

Investment

Merger &amp; Acquisition

Singapore

Indonesia

Southeast Asia

India

More Chinese companies are expected to go public this year in the US even as ties between Washington and Beijing remain strained and strict crossborder listing rules have effectively closed the pipeline, according to the vice chairman of Nasdaq.
"China listings are going to come back. China is not a market that will be ignored," Robert McCooey, who also heads new listings for Asia Pacific companies on the company's exchange, told Nikkei Asia, citing a more "robust market."
24 Chinese companies listed on US exchanges last year, raising USD 656 million, according to a report from the US-China Economic and Security Review Commission, a US government agency.
This year's listings are on a similar pace, with 12 Chinese companies debuting so far, according to a Nikkei Asia tally. More money is expected, as at least USD 483 million has been raised so far this year.
McCooey admitted that heightened scrutiny by Chinese regulators of companies seeking offshore IPOs have slowed listings in the US, but was hopeful those listings remained "really strong" for this year.
Nasdaq has a "pretty good ongoing dialogue" with the China Securities Regulatory Commission (CSRC), McCooey added.
The CSRC has given approval to 43 companies to list in the US this year compared with 26 companies in the eight months after the new rules came into effect last year. Not all of the Chinese companies with the CSRC's approval have listed, however.
Chinese companies looking to raise capital on Wall Street, a traditionally popular way to gain significant value, also face growing scrutiny in Washington.
Last month, Republican senator Rick Scott, of Florida, wrote a letter to Nasdaq with concerns over allowing "companies that create a national security risk" to trade on its exchange, more specifically, Chinese lidar company Hesai, which was put on a Defense Department list of companies with Chinese military ties on January 31.
Chinese fast fashion giant <a title="" href="https://asia.nikkei.com/Business/Markets/IPO/China-s-Shein-faces-laundry-list-of-concerns-over-possible-London-IPO" target="_blank" rel="noopener">Shein's IPO plans</a> have also been thrust into the spotlight after lawmakers last year urged the SEC to stop the company from going public until it could prove its supply chains in China were free from Uyghur forced labor.
However, Chinese EV maker <a title="" href="https://asia.nikkei.com/Business/Companies/Chinese-EV-maker-Zeekr-soars-34-on-NYSE-debut" target="_blank" rel="noopener">Zeekr made a strong debut</a> last month on the New York Stock Exchange (NYSE) in what was the biggest IPO for a Chinese company in the US since 2021, when China clamped down on offshore capital raising.
China's current rules, which came into effect in March 2023, require companies looking to list in the US and Hong Kong to get approval from the CSRC.
They must also obtain approvals from departments overseeing cross-border data security.
But getting the green light from different regulators, many of which have not handled public listings until recently, has been a challenge, according to senior bankers advising on Chinese companies on offshore listings.
The US IPO market is still waiting to rebound after a sluggish couple of years following a boom in 2021, when 311 companies went public—the most in 20 years. But high interest rates and dampened investor sentiment slowed US listings to 54 companies last year, according to data from University of Florida professor and IPO specialist Jay Ritter.
Leading tech companies from Southeast Asia, such as Singapore's Grab or Vietnam's VinFast, have been the source of major Asian IPOs on the Nasdaq composite over the past few years, and McCooey is especially excited about a recent uptick in South Korean listings, including the upcoming debut of online comics platform Webtoon Entertainment.
He also expects more Japanese companies, such as pachinko hall operator Libera Gaming Operations, to list on the Nasdaq this year.
"We certainly are going to have more and higher quality listings from Asia this year than we've had in the past three years."
This article first appeared on <a tabindex="0" href="https://asia.nikkei.com/Editor-s-Picks/Interview/Nasdaq-expects-more-China-IPOs-despite-regulatory-logjam" rel="noopener noreferrer" data-token-index="1">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing <a tabindex="0" href="https://www.kr-asia.com/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/" rel="noopener noreferrer" data-token-index="3">partnership with Nikkei</a>.

Nasdaq expects more China IPOs despite regulatory logjam

… round was led by Orinno Capital, with follow-on investments from Tsinghua Holdings Capital, Casstar, Aoxiang Tianxing, and Quanzhou Hairui. The funds will be used for the R&amp;D and commercialization of Aerofugia's AE200 product. —<a href="https://36kr.com/newsflashes/2837471368416130">36Kr</a></li>
</ul>
whereRelatedArticle
<h3>Samsara Eco, Mekari, Hozon Auto, and more led yesterday’s headlines:</h3>
<ul>
<li aria-level="1"><a href="https://www.samsaraeco.com/">Samsara Eco</a>, a climate-focused company harnessing recycling technology to eliminate plastic waste, has raised USD 65 million in its latest funding round. The round was co-led by Temasek and Main Sequence, along with participation from new and existing backers such as Wollemi Capital, lululemon, Hitachi Ventures, Titanium Ventures, and DCVC.</li>
<li aria-level="1"><a href="https://mekari.com/en/">Mekari</a>, a software-as-a-service company operating in Indonesia, has announced its acquisition of <a href="https://www.jojonomic.com/">Jojonomic</a> to expand its business and ecosystem in the archipelagic nation.</li>
<li aria-level="1"><a href="https://www.hozonauto.com/en/en-index.html">Hozon Auto</a>, a Chinese electric vehicle manufacturer, has lodged its prospectus with the Hong Kong securities regulators, aiming to become a publicly traded EV maker.</li>
</ul>
If there are any news or updates you'd like us to feature, get in touch with us at: <a href="mailto:hello@kr-asia.com">hello@kr-asia.com</a>.

Deals in brief: Hubble secures debt facility from AlteriQ Global, SoftBank invests in Perplexity AI, Etched raises funds to further develop specialized AI chip, and more

Philippines

36Kr has learned from multiple industry sources that Sunwoda Mobility Energy Technology (SEVB) has clinched deals to supply batteries for Li Auto’s M7 and M8 models, as well as “Kunlun,” Xiaomi's third EV model.
When 36Kr reached out to Sunwoda for confirmation, the company responded that it could not disclose details due to confidentiality agreements.
Currently, the Chinese battery industry is dominated by Contemporary Amperex Technology (CATL) and BYD, with CALB in third place, while companies like Eve Energy, Gotion High-Tech, SEVB, and Svolt Energy Technology jockey for position.
For two years, a relentless price war has raged in the automotive market, with batteries at the epicenter of cost-cutting strategies. Second-tier battery manufacturers, led by CALB, face increasing pressure to lower prices, sometimes even selling at a loss to stay competitive.
One insider revealed to 36Kr that Xiaomi’s latest vehicle is highly cost-driven, a factor that played a crucial role in SEVB securing the contract. The price? Below RMB 0.60 (USD 0.08) per watt-hour. In more extreme cases, Zenergy's aggressive pricing—offering battery cells below RMB 0.35 (USD 0.05) per watt-hour—secured them a major supply role with Leapmotor.
This intense competition is seeing second-tier manufacturers encroach on orders previously monopolized by CATL. For example, Nio has introduced CALB as a secondary supplier, and Li Auto has brought in SEVB and Svolt to supply batteries for certain models. Therefore, for second-tier battery manufacturers, the competition is both brutal and opportunistic.
<h3>About Sunwoda</h3>
Founded in 1997, Sunwoda initially made its mark in battery pack production for consumer electronics, supplying brands like Apple, Huawei, Xiaomi, Oppo, and Vivo. The company went public on the ChiNext board in 2011. In 2014, as new energy vehicles (NEVs) gained popularity, Sunwoda established SEVB, which focuses on both pack and cell manufacturing.
SEVB has attracted significant investment from companies such as Li Auto, Nio, Xpeng Motors, SAIC Motor, GAC Group, Dongfeng Motor, and investment giants like IDG Capital, Shenzhen Capital Group, and the National Green Development Fund. A final financing round in June 2023 valued the company at RMB 36 billion, although its ChiNext listing application has since expired.
SEVB has carved out a niche in the hybrid electric vehicle (HEV) market, maintaining the top spot for three consecutive years according to SNE Research. Although HEVs have a small market share in China, the demand for high charging rates has driven SEVB's development of fast-charging technology.
Among second-tier battery companies, SEVB stands out for its fast-charging technology. In 2022, SEVB’s SFC480 battery was installed in the Xpeng G9, marking a significant milestone.
This year, SEVB introduced the third version of its fast-charging battery at the Beijing Auto Show. Available in both lithium iron phosphate (LFP) and ternary lithium versions, the new battery can achieve a peak charging rate of 6C, reaching 80% state of charge (SOC) in just ten minutes. Despite these advancements, the Xpeng G9 remains the only mass-produced model using SEVB's fast-charging technology.
SEVB serves over 34 vehicle models across 18 clients, including major players like Li Auto, Xpeng, Leapmotor, Geely (including its Zeekr, Galaxy, and Lynk &amp; Co sub-brands), Dongfeng, GAC, and SAIC. The company has also secured international deals, supplying batteries for Volkswagen's entire overseas hybrid series and Volvo's GPA series.
However, SEVB faces the challenge of a diverse but non-elite customer base, resulting in high volumes but low margins. The contracts with Li Auto and Xiaomi provide a breakthrough opportunity, potentially boosting SEVB's market position.
Li Auto, with its monthly sales of 30,000 units, is rapidly rising in the industry. The company plans to launch its all-electric models, including the Li Mega and three pure electric SUVs (M7, M8, and M9), in the first half of 2025. Li Auto's strategy focuses on solving range anxiety through fast-charging capabilities, which aligns well with SEVB’s fast-charging technology.
Previously, industry insiders analyzed that, while CATL's batteries could achieve certain charging rates at the cell level, SEVB could match them, with the only difference being CATL's thermal management design. However, SEVB’s market share largely depends on user acceptance of its products and brand. An insider told 36Kr that, despite Li Auto deploying SEVB’s batteries in the Air variant of its L8 model last year, annual sales barely exceeded 10,000 units.
<h3>Future prospects for EV battery manufacturers</h3>
The battery industry is poised for significant shifts. CATL rose to prominence by securing BMW’s orders and solidified its position with Tesla. Similarly, CALB’s growth was fueled by orders from GAC Group. SEVB’s trajectory mirrors these success stories, with substantial growth expected by 2025.
As fast-charging technology and high-capacity plug-in hybrid electric vehicles (PHEVs) gain traction, second-tier battery manufacturers like SEVB may find niche opportunities for growth. The rise of 4C and 5C fast-charging batteries, and the potential of 6C products from competitors like CALB and Eve Energy, signify an evolving market. SEVB, with its dedication to fast-charging technology and existing partnerships, is well-positioned to capitalize on these trends.
whereRelatedArticle
Winning Xiaomi’s orders also ties into the broader industry shift towards hybrid cars. Xiaomi’s SU7, with its limited suppliers (CATL and BYD), demonstrated massive demand, with orders surpassing 100,000 units within a week of its launch. Rumors suggest Xiaomi’s third vehicle will be a HEV, a segment where SEVB has relevant expertise, thanks to its experience with Li Auto.
If Xiaomi's new models maintain their sales momentum and SEVB continues to secure major orders, its shipment volumes could see a significant increase. SEVB’s total battery shipments in 2023 were 11.66 GWh. A single model from Xiaomi could add 2 GWh annually, marking a substantial boost.
The dynamics of the battery industry can change rapidly with just one or two major orders. SEVB's path resembles those of industry giants, and the results should be evident by 2025.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/2827558717082112">article</a> was written by Han Yongchang for 36Kr.

Sunwoda clinches battery deals with Li Auto and Xiaomi

Battery

… growth stage.
According to PCMI, the Latin American e-commerce market is developing rapidly and expected to exceed USD 509 billion in value in 2023, up 27% over 2022 and with a CAGR of 23% through 2026. Additionally, although the annual growth rate of Latin American e-commerce will slow compared to the growth rates exceeding 35% in 2021 and 2022, the growth trend remains robust. The region's internet penetration rate has surpassed 85%, and e-commerce penetration has reached 66%.
The report shows that convenience, affordability, and speed are important factors in Latin American consumers' online shopping decisions. Specifically, 70% of consumers pay more attention to product prices and description accuracy when shopping online, and 60% care about the discount strength of products. The median price of various categories in Latin America is concentrated between USD 30–40, with the median price of the top 1,000 products being USD 32.17.
Despite the regulatory rollercoaster, Chinese products remain highly favored by Latin American consumers. According to data from JPMorgan Chase, most cross-border goods in Latin America come from China, the US, and Japan, with Chinese goods accounting for as much as 62%, about 2.6 times that of the US. Compared to mature e-commerce markets like China, the return rate of e-commerce purchases in Latin America is relatively low. According to 2022 data from Statista, the return rate in the Chinese market is 66%, while in Brazil, it is only 31%. Another report from the Mexican Association of Online Sales (AMVO) stated that the local return rate for e-commerce products is only 20%.
Consumers' desire for cost-effectiveness and low return rates underline the potential of the Latin American e-commerce market. The performance growth of Latin American e-commerce platform Mercado Libre is a prime example. Its financial report shows that, in the fourth quarter of 2023, Mercado Libre's revenue reached USD 4.261 billion, a year-on-year increase of 42%, the fastest quarterly growth since the third quarter of 2022. Its GMV reached USD 13.5 billion, a year-on-year increase of 29%, the highest level since the second quarter of 2021.
Brazil and Mexico account for half of the Latin American e-commerce market. Brazil also ranks as one of the top regions for per capita internet usage time on mobile devices, only behind China, India, and the US. As the usage time of mobile internet grows, Brazil's online shopping usage time has also increased to the third highest globally, continuously driving the penetration rate of e-commerce in Latin America, based on data as of 2021.
Before opening the Brazil site, Temu's online business had already entered Chile, Colombia, Peru, Mexico, Uruguay, Ecuador, the Dominican Republic, Panama, and Puerto Rico, covering major national markets in the Latin American region. Brazil is clearly a country Temu cannot miss on its path to globalization. However, the rapid pace of policy change will test the company’s ability to adapt comprehensively and accordingly.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/2823311947926024">article</a> was written by Leslie Zhang for 36Kr.

Temu’s LATAM expansion stymied by Brazil’s complex tax policies

Temu

East Asia

E-commerce

Consumer Economy

Latin America

Brazil

… suddenly narrowed as a result.
Due to this rapid convergence, Chinese AI chip manufacturers were able to quickly get started with tuning and adapting their large models. More importantly, at this time, they were able to start on level ground with other international players.
Currently, with Nvidia's strict prohibition on running CUDA on other AI chip hardware platforms, coupled with the further tightening of US chip bans and the global shortage of computing power, Chinese large model software companies struggle to obtain the most cutting-edge GPU chips. Therefore, the first pain point to resolve is figuring out how to migrate existing large models to new computing platforms.
Given the urgent demand for computing clusters in large model training, Chinese AI chip companies are now committed to strengthening their cluster capabilities. Taking Biren with its GPGPU architecture as an example, 36Kr said customers have provided feedback that Biren's SUPA managed to complete practical application migrations in a short time with software team support, and its performance in mainstream open-source large models has shown promising results.
If AI chip manufacturers can provide easy-to-use and low-cost migration tools, and offer comprehensive model adaptation capabilities as well as mature cluster deployment experience, rapid implementation of large models becomes feasible.
Industry insiders also told 36Kr that several Chinese companies, including Biren, have already completed adaptation for most domestic open-source large models, accumulating substantial experience in deploying 1,000-card clusters, and the time for self-developed model adaptation by Chinese large model partners has significantly shortened.
36Kr also learned that, besides helping users quickly migrate from CUDA to the SUPA ecosystem, large model companies can also leverage Biren’s architectural features and SUPA's capabilities to extend the CUDA ecosystem, further enhancing performance.
By developing everything from the bottom up, Biren can maximize its hardware advantages, ensuring that its software stack can always be optimized, iterated, and adjusted regardless of changes from hardware to terminal applications.
Under the current stronghold, apart from the chip layer, localization is actively being promoted across the large model software, computing power, and cloud computing layers as well.
AI chip companies, as the foundational building blocks of the overall AI ecosystem, seek to deeply cooperate with large model, framework, and cluster companies to maximize overall performance.
For example, Biren has not only partnered with framework developers like PaddlePaddle to not only meet enterprise users' development needs in line with international standards, but specifically tailor solutions to be compatible with the domestic environment, providing a smoother integration path for Chinese AI companies.
Simultaneously, Biren has also partnered with Chinese computing power optimization players like Infinigence, further driving the localization of AI computing in an efficient manner.
To resolve bottlenecks in the ecosystem, Biren is promoting its software platform by building computing power platforms, open-sourcing related tools and libraries, and opening upper-level models. It is carrying out joint adaptation and optimization with framework and large model partners to establish ecosystem collaborations, and also promoting implementation through various means like research cooperation with universities, research institutions, and end customers.
Software is undoubtedly the most challenging barrier to break through, and it is currently the consensus focus of all major AI chip companies. By making concerted efforts across industry, academia, and research, breakthroughs can be achieved. For instance, Zhejiang University's AI teaching platform Mo uses Biren’s hardware and software resources as the foundation for teaching practice, providing students with practical opportunities and sowing the seeds for the long-term development of the domestic software ecosystem.
<h3>Conclusion</h3>
Undoubtedly, computing power has become the battleground of the AI era, with its severe shortage constraining the development of AI technology in various countries.
OpenAI’s CEO Sam Altman once reportedly said that “computing power will be the currency of the future,” suggesting that the development of AI will transpire into a massive power struggle between companies, organizations, and even countries.
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Currently, Nvidia's GPU hardware, thanks to its advantages in CUDA software, is highly sought after by the market and has long been in a state of undersupply. And the rise of large models replacing deep neural networks as the new generation of AI technology just gives China's AI chip players a rare opportunity to play catch-up.
Looking back over the past two decades, the reason why Nvidia has been able to dominate the AI era is due to its first-mover advantage in the field of AI, leveraging the wave of deep learning to achieve a strategic advantage over Intel with the CUDA platform.
Now, a brand new path is about to emerge again. But this time, Chinese companies will be ready.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/2774096074472452">article</a> was written by Xiao Xi for 36Kr.

Why software may be a bigger hurdle (than hardware) for semiconductor companies

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