Baidu, SenseTime dominate China's enterprise large language model market

26 Aug, 2024

Baidu, SenseTime dominate China's enterprise large language model market

Baidu and SenseTime, alongside start-up Zhipu AI, are leading providers in China’s business-focused large language model (LLM) services market, according to a recent IDC report. Baidu AI Cloud holds the top position with a 19.9% market share and 350 million yuan ($49 million) in revenue for 2023, followed by SenseTime with 16% of the market.

Zhipu AI is the third largest player, with Baichuan and 4Paradigm also ranking among the top five. The LLM market in China was valued at 1.76 billion yuan last year, reflecting the early stages of AI model investment, with many businesses adopting a cautious approach. However, IDC predicts significant changes in the market over the next two to three years.

Baidu reports that more than half of China’s state-owned enterprises are using its services for AI innovation, with its Ernie LLM-based enterprise platform, Qianfan, supporting 150,000 clients and enabling the development of 55 original applications. The competitive environment among Chinese AI firms, including ByteDance, Alibaba, and SenseTime, highlights the race to secure more industries for generative AI solutions. While consumer interest in generative AI products has plateaued, over 600 million people in China are now using LLMs, contributing to economic and societal growth.