Google banks on artificial intelligence tools for its return to China
San Francisco/Beijing: More than seven years after exiting China, Google is taking the boldest steps yet to come back. And it’s not with a search engine.
Instead, Google’s ingress is centered around artificial intelligence. The internet giant is actively promoting TensorFlow, software that makes it easier to build artificial intelligence (AI) systems, as a way to forge business ties in the world’s largest online market, according to people familiar with the company’s plans. It’s a wide pitch targeting China’s academics and tech titans. At the same time, Google parent Alphabet Inc. is adding more personnel to scour Chinese companies for potential AI investments, these people said.
“China is a tremendous opportunity for any company because it is by far the single largest homogeneous market,” said Kai Fu Lee, who headed Google’s China operations before the company left in 2010. The market dwarfs any other, given how many Chinese people are online, and data from that “can be used to advance products, especially those relating to artificial intelligence”, he added.
A more active Google in China does not guarantee a profitable Google in China. The company’s primary mechanism for cashing in on its AI tools, its cloud-computing business, can’t be accessed by developers in China without overseas servers or technical tricks to work around the country’s Great Firewall, laws and technology that control the domestic internet and block some foreign websites. Google also faces stiff homegrown competition, mainly from search nemesis Baidu Inc., in the race to create the most popular foundational tools for inventions like voice-controlled speakers and self-driving cars.
Still, Google is clearly interested in reigniting its business in China. It pulled its search engine and many other services from the mainland in 2010 over government censorship. In the years since, Google has explored several paths for re-entry, including activating its mobile app store there, with little success. China has become the biggest market for smartphones running Google’s Android software, but without Google services.
“I’m committed to engaging more in China,” Sundar Pichai, Google’s chief executive officer, said in a recent interview. “We’ll thoughtfully figure out how to engage deeper, and I don’t know what the answers are.” A Google spokesman declined to comment.
Rather than another splashy product launch, Google’s latest China strategy is a grassroots effort focused on getting developers in the country trained and hooked on its AI building blocks. It’s similar to the way business software start-ups get employees using their services before corporate IT departments notice. Once the tools become popular, firms often accept the technology and sign up for full service.
In the past month, several of Google’s US-based engineers have given at least three detailed briefings at TensorFlow developer events in Beijing and Shanghai.
Two of those were invite-only, with attendees asked not to record, photograph or even blog about the sessions, according to people familiar with the gatherings.
The latest tactic fits with Pichai’s mantra that Google be “AI-first”—an effort to re-orient its web services from a world where people type on screens to one where they talk to an array of devices. TensorFlow, which Google began offering free in 2015, is a cornerstone. The tools have become wildly popular with developers and inspired imitators.
It’s hard to find a place as fertile for AI as China. The country has one of the fastest growing TensorFlow developer communities in Asia, despite the fact that Google’s cloud services are unavailable there. The Chinese government has made AI a national priority. Scores of Chinese companies are deploying machine-learning systems—AI software that automatically adjusts to data—to update banking services, identify faces in crowds and control drones.
Matroid Inc., a machine-learning start-up in Palo Alto, California, hosted a conference on TensorFlow in March. Jeff Dean, a revered Google engineer, spoke and posted his presentation slides online. Within an hour, the slides were translated into Mandarin and went viral on the Chinese social network WeChat, said Matroid’s CEO Reza Zadeh.
As interest has grown, Google is going on a hiring spree, recently posting AI job openings in several Chinese mega-cities. The company has started sending more staff there, too. In recent months, members of Google’s corporate-development team and Alphabet’s private equity arm, CapitalG, have met with AI companies based in China, according to two people familiar with the situation.
One person described these efforts as “information-gathering” and said neither investment arm has decided to enter financing rounds recently. These people asked to remain anonymous talking about private company matters.
In 2015, Google invested in Mobvoi, a Chinese start-up run by former Google engineers that places AI-powered chatbots inside smartphones, cars and other devices.
Google’s latest China effort may fail like its previous attempts—and the country’s response to the company’s most-public event there earlier this year isn’t encouraging. An AI system developed by DeepMind, Alphabet’s AI research lab, trounced China’s human champion in a game of Go, offending senior officials and helping spark a government-funded push to dominate the technology.
That hasn’t deterred Google. The company has pitched Alibaba and Tencent Holdings Ltd on using TensorFlow, an attempt to spread the software through the rank’s of China’s largest tech firms, people familiar with the effort said.
TensorFlow has been downloaded more than 7.9 million times so far, from both its own servers and outside sources, and the company is pleasantly surprised by the early uptake. Bloomberg
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