In 2017, the AI industry experienced a significant breakthrough. Several unicorns emerged in China’s artificial intelligence sector, with companies like Cambrian and Horizon standing out as leading examples. According to CCID Consulting, the core AI industry in mainland China reached 70 billion yuan in 2017, and it is projected to grow to 160 billion yuan by 2020, reflecting an annual growth rate of approximately 26.2%. This marked a turning point for the industry, as AI technology began to gain more traction across various sectors.
The year 2017 was also seen as a collective breakout for the mainland AI industry. Major players such as Haisi Kirin 970, Cambrian, and Horizon introduced AI-enabled chips tailored for mobile devices, autonomous driving, and urban security. These innovations attracted significant market attention, drawing interest from both domestic and international investors and manufacturers alike.
CCID Consulting highlighted that the AI core industry in China surpassed 70 billion yuan in 2017, driven by national policies and regional initiatives. With the release of the "New Generation Artificial Intelligence Development Plan" by the State Council in July 2017, AI was elevated to a national strategic level. This move aimed to promote deeper integration between AI, big data, and the internet, with cities like Beijing, Shanghai, and Anhui launching their own AI development plans to boost industry growth.
Emerging AI companies such as Cambrian, Shenjian Technology, and Horizon have made notable progress, introducing application-based chips for speech recognition and computer vision. These technologies are playing a crucial role in advancing smart home systems and autonomous driving solutions, providing the necessary computational power for these emerging fields.
By 2020, the core AI industry in mainland China is expected to exceed 160 billion yuan. Hardware products still make up a large portion of this growth, with Beijing, Shanghai, and Guangdong remaining key hubs. In 2017 alone, total financing in the AI sector surpassed 4 billion U.S. dollars. The rapid expansion of smart driving, intelligent security, and smart home applications has become a major driver of development.
In terms of the AI industry structure, hardware accounted for 55% of the market, with sensors, advanced driver assistance systems (ADAS), and smart wearable devices being the most prominent categories. Beijing and Shanghai are home to major manufacturers of neural network chips and FPGAs, while Shenzhen excels in service robots and intelligent drones. Anhui has developed a solid foundation in smart wearables, industrial robots, and smart home appliances.
CCID Consulting also noted that companies like Dachang have started to open-source their core products, and many firms are actively recruiting machine learning talent. After Baidu's PaddlePaddle became open source, Tencent followed suit by releasing its Angel computing platform. This trend is helping to build a stronger open-source ecosystem, which is expected to eventually consolidate into one or two dominant architectures, forming a unified platform for AI operations.
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