Showing posts with label China. Show all posts
Showing posts with label China. Show all posts

Tuesday, 29 January 2019

'Chip War' in search of AI Supremacy!

Ever wondered why we need GPUs or AI accelerators for optimal performance of AI Applications? Ever wondered why a field that existed since the the dawn of twentieth century is only now burgeoning with breakthroughs? 

As Kaplan and Haenlein puts it, "AI is a system’s ability to correctly interpret external data, to learn from such data, and to use those learnings to achieve specific goals and tasks through flexible adaptation”.

Artificial intelligence applications that mimics cognitive functions involves deep neural networks, machine vision, sensor technologies, and machine learning techniques that depends on multi core designs, low precision arithmetics and in memory computing capabilities to work well in both cloud and the edge.

In fields like robotics, autonomous vehicles, drones, decease diagnosis, speech recognition, object or face recognition, capability to vastly expand AI calculations by embracing massively parallel processing power, means near real-time learning, energy efficiency and optimal performance. This is why AI applications requires AI accelerators in  its infrastructure design to support various types of computing based on the use cases for sustaining performance during training and inferences.

AI Accelerators

Researchers in scientific fields were probably the first to discover, experiment and adopt GPUs for accelerating AI applications, almost 2 decades ago.  Since then, a 'Chip War' has slowly formed along with other technological developments and is now reaching its peak, among cloud companies, Internet giants, chip makers and startups searching for supersonic growth, especially in the fields of artificial intelligence, machine learning and deep learning. 

Apart from GPUs (graphics processing unit), other types of microprocessors available in the market currently are FPGA (field programmable gate array), ASIC (application specific integrated circuits), in memory architecture and heterogenous computing. As of today, there is no dominant design that underpins all AI architectures, but NVDIA do seems to command some leadership here while others such as Intel, AMD, WAVE Computing, UK's Graphcore and Israel's Habana Labs  are all beginning to ship viable products. 

Chinese players...

China has been investing aggressively to produce indigenous AI chips to wean from dependence on US based producers, with ongoing researches underway by major tech corporations, such as Baidu, Alibaba, Tencent and Huawei, apart from government initiatives. 

Huawei released several products last year, claiming to be faster than NVDIA with ready adopters in datacenters globally. Another startup called Cambricon released products and is aiming for 30% marketshare in China, setting off the Chinese AI chip industry. One other company worth mentioning here and quite notably working on a customised AI chip is China's leading facial recognition system provider, Sensetime, which is planning to build another three or four supercomputers to process data feeds for facial recognition from millions of cameras nation-wide.

The AI chip leadership momentum will only continue to intensify in 2019....

Intel, Nvidia, AMD and Qualcomm are not the only one competing to produce an omni product that can infiltrate into gadgets, computers, machines and robots. There are others such as IBM, Amazon, Apple, Facebook, Google, Microsoft, Tesla and many more in the Deep Learning space, all making attempts at the design and potentially a universally accepted standard and product.

Facebook recently sent a strong signal by hiring Google's Head of Chip Development, that the social networking firm is serious about building its own semiconductors, joining the likes of Apple, Google, and Amazon.

Cerebras Systems, a startup still in stealth mode hired a top Intel executive, Dhiraj Mallick as its Vice President of Engineering and Business Development. Mallick served as the VP of architecture and CTO of Intel’s data center group prior to this.

What to expect...?

For now, the market for deep learning chips is overwhelmingly dominated by Nvdia graphics processors (or GPUs), which have also been widely used in games and other graphically-intensive applications.

Startups looking to attack this space, has the opportunity to beat the big chipmakers and create a new generation of hardware that will be omnipresent among any AI devices. Think autonomous vehicle, robotics, drones or even a server within a healthcare organization training models for medical problems.

As new products from companies such as WAWE, Huawei, Cambricon, Graphcore and Habana enters datacenters and selected enterprises this year, we might see a flow of special purpose devices being released into the market for AI and deep learning.

AI chip innovation will also aid researchers to make further breakthroughs in various fileds such as Computer Vision, Conversational AI, Natural Language Processing, Reinforcement Learning, Transfer Learning, and General AI. Eventually some businesses and governments from buyer nations, may start to take advantage of the available AI chip offerings and form their own discreet AI clouds for a variety of high profile projects across the organisation for deeper business differentiation and operational excellence as models train faster and learn in realtime.

Saturday, 23 September 2017

Come Not Between the Dragon Riders, Rise of Asian Platforms

The Asian Platform business scene is worth over a trillion dollars in market value and is only the second most prominent after North America. The region’s thirty over publicly traded platform companies and thousand other startups is enough to make any investor exuberant over growth opportunities for expansion, acquisitions, investments and joint ventures.

Uneven Business Landscape, Full of Opportunities

Market conditions does differ from country to country, hence the contrasting maturity levels. Overall, favourable economic condition, trade policies, maturing infrastructure, growing middle class and an upswing in GDP, is paving way for incredible growth unattainable in developed markets of North America and Europe.

Leaders of the Pack – China, Japan and Korea

Growth is mostly fuelled by China, Japan and Korea where there is high domestic demand for online services, concentration of capital, available talent, a frenzy of innovation projects surrounding core technologies aimed to realise full business potential, enhance services and user experience. Alibaba, Tencent, Baidu, Softbank, Yahoo Japan and Kakao is clearly taking the lead in diversifying their businesses into multi-platform conglomerates, through series of acquisitions, investments and joint ventures.

Pioneers In Challenging Environment

India and Southeast Asia’s best performing platforms such Flipkart, Snapdeal, InMobi, PayTM, OYO, Lazada, Olacab, Garena and Grab on the contrary, are focusing on becoming profitable on well tested e-commerce, gaming, payment, ride sharing, transportation and advertisement models. They are making way for other players by addressing the region’s weak investment landscape, antique trade regulatory policies, uneven access and speed of Internet services. Though, the region is never short of startups. Arrival of newcomers such as Omise (Fintech), and TripAlly (Travel Platform) based out of Thailand, are just two examples reflecting the region's ongoing commitment to platform economy.

Noteworthy Observations on Business Model

The platform business model of the Asian region is centred on consumers and SMBs, unlike American platforms that evolve around enterprises mostly.

Online marketplaces for buying and selling goods, financial services, communication, gaming, transportation and travel are some examples of where good response is tracked in Asia. As such, Asian Platforms generate a significant share of revenue from transactions and trade as opposed to American platforms (e.g. Facebook and Google) which depend on advertising.

A massive population which is learning quickly to adopt consumer technologies for various lifestyle reasons, is a huge encouragement to the sector to digitise existing and create new innovative services.

Innovations centred on Artificial Intelligence, Blockchain and Robotics

China, Japan and Korea is pumping tons of cash on developing capabilities in artificial intelligence, blockchain architecture, virtual reality, augmented reality, Internet of things, cloud computing and robotics.

The breakthroughs are expected to help:
Automate search ranking, recommendations, image classifications, image character recognition, speech recognition, natural language translation
Improve experience for Asian customers whose native language characters are complex and cumbersome to type
• Last mile delivery automation with drone (e.g. Alibaba, JD.com)
Build virtual assistants to enhance shopping, education and gaming (e.g. Baidu)
Develop a Broader payment solution (e.g. Tencent and Alibaba)
Establish transparency of supply chain (e.g. Alibaba)
Ensure food safety (e.g. Tencent, Alibaba)
Development of humanoids (e.g. Pepper, Softbank)
Development of autonomous vehicles (e.g. Apollo, Baidu)
Blockchain e-commerce (e.g. TripAlly)

Research and development centers are scattered between China, Japan, Korea, Hong Kong and Singapore. Government initiatives to utilise upcoming technologies to upgrade industries further aggregates efforts between public, private and government affiliates.

Investments in Stakes and Acquisitions

There is no doubt that Asian Platforms are stepping up their game in the international arena to compete with the likes of Amazon, Google, Apple and Facebook.

Softbank's $100 Billion Vision Fund

The $100 Billion Vision Fund's recent investment track record probably is the best evidence to point out how critical platform businesses are to generate expected return. The largest tech investment portfolio ever to be created, the investment dollars are spread to both international and many promising Asian Platforms such as Flipkart, OYO, Ant Financial and Didi Chuxing. Softbank is also aggressively pursuing stakes outside the scope of this fund in Asian Platforms such as online insurer Zhong An, Grab, OLA Cabs and Snapdeal.

Tencent versus Alibaba Race in Southeast Asia

Just before the arrival of Amazon in Southeast Asia, Rakuten shutdown operation in the region. This was later followed by Rocket Internet’s (operator of Zalora and Lazada) exit, selling most businesses it operated. But, what seemed like a drawback of key players from the region very swiftly started a healthy regeneration with close to $3 Billion in investment from Chinese players.

Some notable acquisition and investment news since then are;
Softbank and Didi Chuxing took a large stake in Grab
Redmart was acquired by Lazada at price point lower than initially raised
Lazada was acquired by Alibaba
Ant Financial acquired Hello Pay
Ant Financial invested in Ascend Money, Mynt, M-Daq
Tencent acquired Sanook
Tencent invested in ABC 360, Go-Jek, Ookabee

The arrival of large Chinese players in the e-commerce, fintech and logistic space is certainly driving more pressure on regional groups such as Orami and Ascend Group that has been fighting for a clear marketshare for sometime. Nevertheless, this development can benefit the region by driving maturity of the sector, underlying infrastructure and regulatory designs.

The ‘Alibaba versus Tencent’ race may not necessarily create a conflict as many analyst cite. Close scrutiny may reveal that both companies are establishing dominance in different segments based on strengths. However, together the giants may impact advertising revenue for product search as consumers shift to their platform to conduct such searches.

Flow of Investments from China to India

Despite a large pool of skilled programmers, proficiency in English, and strong business ties with US and Europe, India’s platform startups continue to struggle to expand with uneven infrastructure, poor internet access, suboptimal government regulatory policies and lacklustre interest by other successful tech related public groups such as Reliance, Future Group, Aditya Birla, and Appollo.

But the potential of platform companies such Flipkart, Snapdeal, Ola and OYO is too good to be ignored by the Chinese giants, notably Alibaba, Tencent and Chinese Internet Plus Holdings who are constantly competing to get a stake in the countries platform scene. There is no mistake that these platform giants are building a ingrained presence in India at the moment.

Fuelling the Startup Eco-system

Programs such as SuSS by Alibaba and others by Tencent is quickly becoming a platform for entrepreneurs to connect and build business support structure. By encouraging platform startups in Asia, larger platform companies are able to cherry pick suitable acquisition targets.

Regulatory Challenges

Regulation over platform and online businesses remains a challenging area for governments in the region due to the border less nature of the business. Exposure to security and privacy matters, impact to local industries, government trade and taxation policies, flow of investments, and the overall economy are some of the factors which stifles effort to harmonise governance.  Self-governance may be helpful for some policy concerns, but deeper cross border regulatory challenges  require collective government effort to codify through regional and international trade  agreements such as the Trans-Pacific Partnership (TPP) which provisions for e-commerce and other digital trade.

Superior Service or Protectionism is Driving Success?

Many experts argue that some of the largest Asian Platforms are perhaps growing out of government protectionism and inability of foreign platforms to operate freely from unfair data, trade, compliance and other domestic policies. Often the region is target for criticism and accusations over inability to innovate effectively, espionage activities, poor privacy and security control.

Inbound and Outbound Trade Gateway

Even if there is truth to this, it’s extremely hard to dismiss the fact that millions of people and thousands of businesses are still transacting over Asian Platforms. In fact, their reach is starting to grow beyond the region. For instance many of the sellers on Amazon and eBay place orders in Alibaba for their stocks. Alibaba acts as a trade exchange to connect Chinese businesses to global consumers and global businesses to Chinese consumers. For small businesses, this is a valuable and cost effective service which includes handling of cross border transaction.

Exceeding Customer Expectations

Similarly Yue Bao an online money market fund owned by Alibaba offers a annualised seven day yield of 3.4% to customers who wish to save their leftover money from transactions. Over 60% of holders in this fund have less than $1000 in their accounts. This fund is currently sized at $165 Billion, performs better and is larger than the JPMorgan Chase US Government Market Fund ($150 Billion).

Not All Strategies Work in Asia

Asian Platforms understand that superiority in technology stack alone is not sufficient for success in diverse Asia. Aligning technology, innovations, investments, and consumerism to address netizens’ needs and SMB growth challenges in buying, selling, conducting secure payment and managing the cross border processes are key to their success.

Criticism, both ill intended and constructive, was taken to build a better business. For instance Alibaba and Tencent took market advice to further improve platform transparency by launching blockchain and artificial intelligence intersects to address issues around unsustainable supply chain and food safety. They are on a journey to debunk all disapproving claims over effectiveness of Asian Platforms.