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Alibaba Cloud VP Predicts 2nd Half of AI Competition to Be 'System War', Foundation Model Pre-training to Move Toward 'Oligopoly'
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Li Feifei, vice president of Alibaba Cloud Intelligence Group and head of the database product division under BABA-W (09988.HK) (BABA.US), shared his views on the recent releases related to the DeepSeek open source week at the 2025 Alibaba Cloud PolarDB Developer Conference, China Business Network reported.

With the popularity of DeepSeek, Li estimated that the underlying trend will drive the second half of AI competition back to the traditional system domain, which is a matter of distributed system engineering.

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Li also predicted that foundation model pre-training in the future will inevitably be centralized and oligopolistic with possibly only a few companies worldwide. Especially since no companies have achieved a closed-loop business mode for foundation models globally, he described this as a money-burning, bottomless pit, unless one day it can break through the AGI threshold to become a money-printing machine.
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