China's OpenKylin OS Gets AI Boost to Challenge Windows Dominance

In response to rapid global AI development, the Chinese open-source desktop operating system OpenKylin has undergone updates for AI personal computers (PCs) to reduce reliance on foreign systems.

A WeChat post by the community maintaining the operating system noted that the latest version, released on Sunday, supports on-device large language models (LLMs), has an AI assistant, and converts text to images, SCMP reported.

The community stressed that AI brings new problems and potential for infrastructure software to improve domestic operating system users' job efficiency and creativity.

State-run Science and Technology Daily called OpenKylin AI "secure, stable, and controllable." The Windows-like OpenKylin attempts to minimize China's dependence on Western OSes.

China released openKylin in 2022 after decades of efforts to create a homegrown alternative to Windows and macOS. Due to US-China trade tensions, Beijing's effort to improve its technology self-sufficiency has increased.

China is Reducing Dependency on Western Tech

The central government is phasing out Windows and Intel CPUs in critical government projects that use Kylin, the closed-source forerunner of openKylin. Kylinsoft, a subsidiary of state-owned China Electronics, and over ten other Chinese businesses, including the National Industrial Information Security Development Research Centre, founded the openKylin open-source community.

Over 3,876 developers and 271 corporations contributed to openKylin 1.0, its first open-source desktop OS, launched in July 2022. Despite these attempts, StatCounter reported that Windows controlled approximately 80% of the China market as of June 2023.

Other Chinese tech firms showcased their innovations during the recent World Artificial Intelligence Conference (WAIC) in Shanghai. Alibaba Group Holding Limited and SenseTime showed considerable AI developments, per Benzinga, signaling heated rivalry in China's AI business.

SenseTime upgraded its SenseNova large language models (LLMs), including 5.5, which improves performance by 30%. SenseTime co-founder and CEO Xu Li said OpenCompass data showed SenseNova 5.5 exceeded GPT-4 in five categories.

In two months, Alibaba's cloud computing subsidiary doubled Tongyi Qianwen LLM downloads to over 20 million. Zhou Jingren, Alibaba Cloud's CTO, reported a 150% growth in Model Studio users to 230,000. Despite these gains, Alibaba's shares fell on Monday.

Moreover, Baidu unveiled Ernie 4.0 Turbo, its newest LLM, strengthening its pricing battle with Microsoft Corp.'s OpenAI GPT-4 model, Alibaba, and others.

Chinese Tech Giants Rise to The Challenge of OpenAI's Pullout From China

These developments come as OpenAI started prohibiting Chinese users from using its tools and services this week, making it simpler for China to recruit domestic developers for local AI platforms. Last month, OpenAI said it would limit API traffic from locations where it doesn't support access.

OpenAI has not explained this abrupt shift. The Chinese government's firewall blocks ChatGPT, but developers used VPNs to access OpenAI's tools for fine-tuning their generative AI applications.

Due to rising tensions between Washington and Beijing, the US has restricted exports of sophisticated semiconductors to China, which are necessary for training AI technology. The AI sector is under pressure, which likely drove OpenAI's decision.

Xiaohu Zhu, founder of Shanghai's Center for Safe AGI, worries about worldwide AI technology access. According to The Guardian, this move also allows local AI businesses like SenseTime, Baidu, Zhipu AI, and Tencent Cloud to lure former OpenAI users.

Baidu responded by offering 50 million free tokens for their Ernie 3.5 AI model and free migration. Through July, Zhipu AI is giving out 150 million free tokens for their model, while Tencent Cloud is giving away 100 million. These companies aggressively promote migration to expand their user base.