China Telecom boldly steps into the GenAI sphere, unveiling a pioneering language model set to rival big tech players.

In a strategic move, China Telecom, a significant state-run network operator, has announced its foray into the GenAI domain. This decision marks the company’s advancement from traditional telecommunications to competing in the rapidly evolving GenAI space, challenging giants like Baidu and Alibaba.

At the core of this transition is China Telecom’s cloud unit, CTYun. CTYun is currently testing its self-crafted large language models, the backbone of GenAI technologies akin to ChatGPT by OpenAI. Hu Zhiqiang, the general manager, declared plans to release this innovative product in the near future, showcasing China Telecom’s commitment to remaining at the cutting edge of technological evolution.

Adding to its GenAI ambitions, CTYun intends to reduce its cloud service costs. This move aligns with broader market trends, as evidenced by Alibaba Cloud’s recent announcement of significant price cuts. China Telecom’s rapid growth in cloud services, achieving a 10.3% market share and rising to third place behind Alibaba and Huawei, underscores its burgeoning influence in this sector.

The GenAI landscape in China is becoming increasingly dynamic, with China Telecom’s entry adding to the diversity. This move follows Alibaba’s recent launch of a ChatGPT-like service for corporate clients and its integration into various platforms. Moreover, other Chinese tech leaders like NetEase are not far behind, unveiling GenAI solutions tailored for enterprise needs.