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A new powerhouse to be reckoned with

By He Wei in Shanghai | China Daily | Updated: 2019-05-07 09:57
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The booth of YouTu Lab, the in-house AI arm of Tencent, at an exhibition. [Photo provided to China Daily]

A magnet for big names

Microsoft is among the global tech powerhouses riding the waves generated by Shanghai's ambitions, bringing to the city some of its most advanced research facilities.

The company's latest move includes the opening of an AI and IoT lab in May 2019, the largest of its kind in the world. According to Microsoft, the facility will help about 300 local clients turn their prototypes into products each year.

Such developments are heartening news for the city, said Yuan Tao, chairman of Shanghai Zhangjiang Group, the operator of the Zhangjiang Science City.

Yuan currently oversees the 66,000-square-meter AIsland, which hosts a slew of AI-related research labs. The first batch of 20 companies includes global organizations and local startup firms such as Microsoft, Alibaba, CloudWalk Technology and a research facility affiliated to Tongji University.

"The profile of these companies, together with the cluster of companies from the upstream and downstream sectors will help AIsland lead the national AI pack and secure Shanghai's position as a budding center for tech innovation," said Yuan.

He added that AIsland, which also acts as an incubator for AI companies, will also pave the way for the development of a wellspring of Shanghai tech firms known for their business model innovation.

Of the most prominent examples is social e-commerce startup Pinduoduo, which took just three years to reach a gross merchandise volume of 100 billion units. In comparison, Alibaba and JD took five and 10 years respectively to reach the same milestone. Pinduoduo's social media-anchored model helps people in rural areas sell local specialties, which has in turn alleviated poverty levels.

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