TL;DR:
- Ant Group established NextEvo, an AI unit led by former Google engineer Xu Peng.
- NextEvo to drive Ant Group’s core AI efforts, including Large Language Models (LLMs) and AI algorithms.
- Ant Group aims to expand its AI capabilities in the competitive Chinese tech landscape.
- Regulatory easing allows Ant Group to pursue credit business growth.
- Founder Jack Ma’s voting rights at Alipay were reduced, signaling progress towards resuming listing.
- Ant Group pioneers AI-driven consumer-facing products built on LLMs.
- Xu Peng’s academic and professional background positions him as a key leader in Ant Group’s AI journey.
- Bailing, Ant Group’s LLM, aims to fuel innovation and value creation across industries.
Main AI News:
In a strategic move showcasing its commitment to harnessing cutting-edge technology, Ant Group, the renowned Chinese fintech giant affiliated with Alibaba Group Holding, has inaugurated a new Artificial Intelligence (AI) division. This newly formed unit, known as NextEvo and spearheaded by Xu Peng, a distinguished Vice President of Engineering at Ant Group, is poised to propel and coordinate the fintech powerhouse’s fundamental AI initiatives.
The development was initially disclosed by the Chinese online media outlet 36Kr, with Alibaba being the proud owner of the South China Morning Post. Ant Group’s amplified focus on AI coincides with a broader trend among major Chinese tech conglomerates, as they increasingly invest in Large Language Models (LLMs) and explore innovative pathways for bolstering growth through advancements in this domain.
NextEvo is set to play a pivotal role in overseeing Ant Group’s proprietary LLM, known as Bailing, while also taking charge of AI algorithms, engineering, natural language processing (NLP), and AI-generated content operations. These strides in AI come at a juncture when Beijing is easing certain restrictions on Ant Group’s operations, following its restructuring efforts in the wake of the last-minute cancellation of its dual listing in Shanghai and Hong Kong in 2020.
Of note, the People’s Bank of China and the government of Zhejiang province are in the process of considering a “personal credit information collection license” for Qiantang Credit Rating, an Ant-affiliated agency. This license is pivotal for Ant Group to expand its credit-related ventures, as confirmed by central bank governor Pan Gongsheng.
While Ant Group had initially applied for this permit in 2021, Chinese financial regulators have subsequently imposed stricter regulatory requirements, necessitating the company’s credit services to align with conventional banking regulations, which has restrained its expansion ambitions.
As part of its restructuring journey, Ant Group founder Jack Ma has seen his voting rights in the firm’s payment app Alipay reduce significantly, from over 53% to just above 6%. The Chinese central bank has recently affirmed that Alipay no longer has a single controller, marking a significant step toward the resumption of Ant Group’s listing.
In a noteworthy milestone from the preceding year, Ant Group became one of the first Chinese tech entities to receive government authorization for consumer-oriented products and applications built on LLMs. Xu, at the helm of NextEvo, has been instrumental in these endeavors, having joined Ant Group in 2016 and overseen the company’s AI research lab, primarily situated in Silicon Valley.
Xu Peng’s impressive academic journey includes a bachelor’s degree in engineering from Tsinghua University, followed by a doctorate from Johns Hopkins University, with a specialization in Natural Language Processing (NLP). Prior to joining Ant Group, he spent over a decade at Google, where he held research positions related to machine translation and advertising algorithms.
In Xu’s words, Bailing, Ant Group’s proprietary LLM, is designed to underpin the development of innovative products across various sectors, ultimately creating substantial value for the industry and its stakeholders.
Conclusion:
Ant Group’s strategic move to establish an AI division, led by industry veteran Xu Peng, signifies its commitment to staying at the forefront of fintech innovation. This initiative not only strengthens Ant Group’s AI capabilities but also allows it to navigate evolving regulatory landscapes and pursue new avenues of growth in the financial technology market. With its pioneering approach to AI-driven consumer products and a strong leadership team, Ant Group is poised to shape the future of fintech.
