Rebirth 08: Rise from copycat phones

Chapter 642 Negotiations on Quantum Computers
October 26, Shenzhen Smart Cloud Group headquarters.

At the latest press conference, the spokesperson for Zhiyun Group once again disclosed information about the superconducting quantum computer.

The company stated that Zhiyun Group is considering officially releasing its superconducting quantum computer soon, and welcomes partners around the world and the media to pay close attention to related information.

He didn't specify when it would be released, only saying it would be soon...

The Zhuyun Group's practice of continuously releasing limited information is also a way to build momentum for the official launch of its superconducting quantum computer, while simultaneously attempting to influence the judgments and choices of more investors, thereby forcing major companies to make greater concessions.

Currently, Xu Shenxue is in negotiations with various conglomerates who want to purchase superconducting quantum computers, and Xu Shenxue is willing to sell.

However, how to buy and sell is debatable.

On one hand, there's the issue of price; on the other hand, if such a powerful weapon is made available for sale, the other party will inevitably have to pay some additional price.

For example, during negotiations with Europe, Xu Shenxue mentioned that you have been making too many small moves recently. Stop messing around and let's do business peacefully. You still have a share in this superconducting quantum computer. Otherwise, the production capacity will be very tight. The American companies might just take over the entire production capacity and not give you a single unit.

Xu Shenxue also had some opinions about some of the small actions taken by the European market in recent years. Although they were not major issues, the occasional occurrences were still annoying.

For example, Europe is recently trying to promote a so-called unified charging data interface.

Zhuyun Group unanimously rejected these offers!
Both Zhiyun Group and Weiku Electronics use the USB-YUN interface, which is a small, flat, round interface that can be plugged in from either side. Its function is very similar to the Type-C interface, except that the Type-C interface is slightly larger.

Now, Europe is trying to get all manufacturers to use a unified Type-C, but Zhiyun Group has long refused... Together with Zhiyun Group and Vcool Electronics, the annual shipment of smartphones reaches more than 630 million units.

Furthermore, Apple is also reluctant to adopt the Type-C interface... On this matter, Zhuyun Group, Vcool Electronics, and Apple all share the same and firm stance!

Everyone should just do their own thing. You European tech backwaters who can't even make a mobile phone shouldn't meddle in such high-level stuff... You don't even understand what a Type-C interface is.

If we add Apple's annual smartphone shipments of around 150 million units, then there are approximately 680 million smartphones worldwide that no longer use the Type-C interface... This is almost half of the global smartphone shipments.

If the three companies mentioned above don't agree, they can't actually achieve a unified Type-C interface... Samsung and other manufacturers are very proactive about this, but they don't have enough say.

Then there are the usual issues like personal privacy, data security, freedom to download apps on mobile phones, and allowing users to replace battery parts themselves... Sometimes they also talk about the safety issues of Hailan Auto's autonomous driving and data security.

In short, they always find something to talk about!
Of course, everyone knows that their purpose isn't too complicated; they just want to collect a fine and get some benefits...

In the internet age, this is how Europeans have been doing things, and it's even more so in the smart terminal market.

It can be described like this: I don't have the skills to play the internet and smart terminal game, but I have the market... You can come in and make money, but you have to pay a commission!

So it's not like they'll cause too much damage, they just come here from time to time. They're not stupid enough to do that. They just want to make some pocket money and share some of the benefits, not to completely fall out with Xu Shenxue!

But how should I put it, it's really annoying.

Not only Zhiyun Group and Yihai Technology, companies under Xu Shenxue's name, are facing these problems, but a large number of high-tech manufacturers in the United States are also facing the same issues.

In dealing with many issues in Europe, Xu Shenxue actually has close cooperative relationships with several financial groups in the United States, especially in the previously hotly debated issue of EU tax avoidance. These companies cooperated very closely... They are all in the same boat; if one is punished, the others will also be implicated.

Therefore, with close cooperation from all parties, major issues were generally resolved by minimizing them and minor issues by settling disputes with relatively small fines, thus avoiding exorbitant penalties.

This time, Xu Shenxue also mentioned these issues to several partners in Europe, taking the opportunity of discussing the problem of superconducting quantum computers... "Manage your subordinates, don't create a bunch of messes every year. It's not much money, but it annoys me!"
The heads of those partners also stated that they would definitely strengthen the management of their employees in the future, but they also implied that there are many other companies in Europe besides them, and they also have competitors, whose employees they cannot control.

Besides, many things weren't actually caused by the conglomerates... Well, the legislators also have families to support.

Some people are more disciplined, while others are less disciplined and have bigger appetites.

Of course, we will do our best to mediate and try to come up with a solution that satisfies everyone.

In short, we should try our best to eliminate the conflicts between us... Xu Shenxue was quite satisfied with their promises, since they were local bigwigs and had more advantages than him in handling many things.

Finally, Xu Shenxue also invited them to attend the press conference in December. Of course... he certainly wouldn't come in person, but would send his subordinate company leaders instead.

At the same time, Xu Shenxue also negotiated with the Americans. In principle, Xu Shenxue was willing to sell the superconducting quantum computer, and the other party also said that price was not an issue, as long as it was within a reasonable range.

However, Xu Shenxue took this opportunity to raise the issue of whether the US market could lift the ban on some of Zhiyun Group's products, such as robots and virtual reality devices, allowing them to be sold directly to individual consumers.

These two products have long been prohibited from being sold to individual consumers in the US market, but not to business users.

This creates a gray area!

American companies can purchase these two products and then offer them to individual consumers either as corporate services or directly as rentals, and this has even evolved into a perpetual rental model.

While this allows for indirect sales, the extra step in the middle significantly increases the price, which naturally affects the number of users… especially since the extra money spent by these consumers doesn't go to Zhiyun Group, but rather to a group of middlemen.

At the same time, this model is actually in a gray area; it's neither illegal nor legal, and whether it can continue depends on whether the other party continues to turn a blind eye.

This presents a considerable risk!
Meanwhile, sales of these two products in the US market are increasing. Among these two product lines of Zhiyun Group, the US market has become the third largest market in the world, second only to the domestic and European markets.

From a practical standpoint, Zhuyun Group must also take this seriously.

In recent years, Zhuyun Group has been lobbying to open up the US market for these two products to individual consumers.

Although some progress has been made, it has not been significant.

On the one hand, the local high-tech industry still has some unrealistic expectations, believing that they will be able to make intelligent robots and virtual devices in the future, and at that time they will be able to easily squeeze out Zhiyun's robots and virtual devices.

On the other hand, many of Zhiyun Group's traditional competitors have consistently refused to allow Zhiyun Group's end products to enter the US market.

Apple is particularly worried that once the sale of these two types of devices is allowed, the smart terminal products of Zhiyun Group, such as mobile phones, computers, and tablets, will also be unbanned... That would be a real disaster for Apple.

Fruit companies rely on the US domestic market to maintain their sales, revenue, and profits... In any case, they will absolutely not allow Zhiyun Group's smart terminal products to enter the US market.

Although the fruit company collaborates with Xu Shenxue's enterprise in many fields, the ban on the US market is their bottom line, or even their lifeline... They will never back down.

Otherwise, if Zhiyun Group's S-series phones were to enter the market, their Apple phone sales would inevitably plummet... You know, there are still a large group of die-hard fans of Zhiyun's S-series phones in the United States.

Back in the day, Zhiyun's early phones, such as the S9, S10, and S11, left a deep impression on American consumers.

Right now, the US alone is smuggling over a million Zhiyun S-series phones into the country every year. If imports were really allowed, that would be a disaster...

So even a couple of years ago, Zhiyun Group tried to talk to the fruit company, saying that many years had passed, so why don't we reconcile and then each open up the market?

The other party firmly refused!

They'd rather not come to the Chinese market than open up the US market to Zhuyun Group...

Even a fool knows that Zhiyun Group's S-series phones have almost absolute dominance in China, monopolizing the high-end market... Even if the market were opened up to Apple now, Apple wouldn't be able to gain much market share.

However, the US market is different. Although Apple occupies a major market share there, it does not have absolute market dominance. At the same time, Zhiyun's S series phones have such strong performance and brand appeal that if the S series phones were to re-enter the market, Apple's home market would suffer a major collapse!
So they'd be stupid to swap markets with Zhiyun... that's just asking for trouble!

In the smart terminal sector, Zhiyun Group can basically give up on entering the US market. Neither bribery nor threats will work. It's not a matter of profit or loss; it's about risking their survival. They're going to defend themselves fiercely! On the other hand, Vcool Electronics Group's smart terminal products still have a chance to enter the market. However, Vcool Electronics Group's product competitiveness and brand appeal are not strong enough, so even if they do enter, they won't be able to gain much market share.

Therefore, Zhuyun Group's strategy for the US smart terminal market is to indirectly enter it by supplying components, and to generate revenue and profit by supplying various chips, screens and other core components.

Today, Zhiyun Group's main demand in the US market is that the US market explicitly liberalize the sale of intelligent robots and virtual devices to individuals, turning the gray area into a legal one. This would effectively reduce the end-user price of these two products and thus expand the market size.

Both of these products are high-priced items, and the market capacity is already limited. If the price is too high, even fewer people will buy them.

When Xu Shenxue discussed this issue with the other party, they also had concerns and did not agree immediately.

The current gray area is relatively flexible for them. As long as the situation doesn't change much, they can continue to turn a blind eye. But if something changes, such as their own company developing a competing product, then they can easily close this gray area.

Of course... it can also be used for exchanges of benefits, such as in the case of exchanging it for imported superconducting quantum computers.

When Xu Shenxue talked with the other party, in addition to discussing the formal legalization of intelligent robots and virtual devices, he also tried to talk about some other issues.

For example, the issue of automobile tariffs was also discussed, but the other cooperating consortiums were powerless to do anything about it, or rather, they said it wasn't worth their effort.

In particular, the American conglomerates that Xu Shenxue collaborated with did not control traditional gasoline-powered vehicle companies within the United States... Furthermore, the upstream of these gasoline-powered vehicle industries is also related to the oil industry!

Gasoline-powered cars burn gasoline!
The giants in the oil industry still wield considerable influence.

Given the conflicting interests from all sides, it will be extremely difficult for you, Xu Shenxue, to sell Hailan Auto, especially Ella Auto, to the American market.

Xu Shenxue only mentioned this occasionally, without having any expectations... Anyway, if he couldn't sell complete vehicles, he could still sell power batteries and automotive-grade computing chips.

The cooperation between the two parties in the field of new energy vehicles is currently quite good. They want to leverage Tesla and other emerging manufacturers to tap into the new energy vehicle market, while Xu Shenxue takes the opportunity to sell batteries and chips, with each party getting what they need.

While Xu Shenxue was engaged in ongoing negotiations with various conglomerates, discussions about superconducting quantum computers continued and intensified.
After all, this is a quantum computer. In the past, people only knew about quantum computers for scientific research purposes. In the past, quantum computers that were truly practical only existed in science fiction novels and belonged to real black technology.

Now this cutting-edge technology has appeared in reality, which has attracted a lot of attention from a large number of technology enthusiasts and even ordinary people!
This has also affected the capital market. For example, the stock prices of Intel and AMD have plummeted for several consecutive days. This is because they are the main players in the traditional electronic computer market. Now that quantum computers have emerged, it makes people very worried about the future of traditional computers.

At this time, Zhiyun Group had not yet announced its specific quantum computer technology roadmap, especially its application model... In fact, Zhiyun Group's application of superconducting quantum computers still cannot be separated from the support of traditional CPUs and GPUs.

At present, quantum computers cannot undertake general or parallel computing tasks on their own and still require the cooperation of traditional electronic computers... The two complement each other, and it is not that one replaces the other.

The second-generation computing center of Zhiyun Group contains both large-scale superconducting quantum computers and large-scale APO graphics cards and CPUs.

But the outside world doesn't know that yet...

This caused some panic among investors, leading to stock price fluctuations in the traditional computer industry.

Even the stock price of Zhiyun Group has been affected... because a large part of Zhiyun Group's revenue and profit now relies on advanced semiconductor business, including computing chips, chip manufacturing, and traditional CPU business.

According to previous reports, quantum computers can also be used to train and run artificial intelligence. Wouldn't that mean APO graphics cards won't sell in the future?
Many investors are concerned about this.

However, this quantum computer is also a product of the Zhiyun Group... The large-scale sales of the superconducting quantum computer in the future will inevitably bring huge revenue and profits to the Zhiyun Group.

Such products with an absolute technological advantage and a monopoly in the market will generate enormous revenue and profits.

With this increase and decrease, many investors are very conflicted about their judgment on the stock price of Zhuyun Group.

This has led to significant fluctuations in the stock price of Zhiyun Group recently. In Hong Kong, the stock price of Zhiyun Group has fluctuated by more than three or four percent due to the participation of many medium and large international capital investors, who have different opinions and judgments among themselves.

Given the sheer size of Zhuyun Group, a three or four percent fluctuation in its stock price is already quite significant.

Overall, however, investors remain optimistic about Zhuyun Group!

Even if we take a step back and assume that the superconducting quantum computer technology is in the hands of the Zhiyun Group, it's impossible for them to cut off their own computing chip business, which has revenues of hundreds of billions of dollars and a gross profit margin of over 85%, just to buy a quantum computer.
This is impossible!
Therefore, many people believe that while the emergence of superconducting quantum computers will certainly have some negative impact on the computing chip business of Zhiyun Group, the impact will be limited!

Anyway, both of these products belong to the Zhiyun Group, so they can sell them however they want. There will inevitably be a certain balance to be struck in order to generate more revenue and profit.

This is also true; senior executives at Zhiyun Group have been discussing and formulating a strategy for launching a superconducting quantum computer recently.

This is not just about selling to quantum computers; we also need to consider the market impact on APO graphics cards.

They must accurately calculate the computing power cost under different circumstances, and then guide customers to purchase more APO graphics cards and quantum computers, thereby generating more revenue and profit for themselves. In this process, they also need to consider the financial situation of each important customer and the returns they can obtain by using artificial intelligence technology.

It doesn't necessarily mean that you have to make money directly from AI technology products. Using AI technology to increase or maintain the market share of existing internet products can also generate profits. Currently, most internet companies deploy GTAI, and most of the basic functions are provided to consumers for free. Although some functions are charged, the revenue and profit are relatively low.

Although these companies deploy GTAI for free, this increases user engagement time, maintains or increases market share, and then monetizes traffic through advertising or e-commerce and other means.

Only when customers use artificial intelligence technology to maintain market share, remain competitive, and earn sufficient profits will they be able to allocate enough funds to continue large-scale purchases of quantum computers and APO graphics cards!

Therefore, as a supplier, Zhiyun Group also needs to carefully consider the revenue of each customer and their ability to invest in artificial intelligence technology, and then formulate a reasonable price range... If the price is too high, the customer will lose money, and no one will do business that loses money!
If the price is too low, I'll lose money, which is even worse.

In order to further stimulate the market, Zhuyun Group has also made corresponding adjustments.

As November began, the AI ​​Research Institute under Zhiyun Group officially released GTAI6, a new generation of large-scale generative AI with significant performance improvements in all aspects. From an application perspective, it is not much different from Yun AI.

Zhuyun Group's investment in Yun AI research is actually not very large, and its overall technology is significantly behind Zhuyun Group's artificial intelligence technology in the terminal field.

The main reason is that there is not much interest in large-scale generative AI within the Zhiyun Group. The Yun AI project is purely for the convenience of its own customers, and at the same time, it is to create a model to guide other companies to follow suit.

Like previous GTAI series models, the new GTAI6 is released free of charge, allowing all enterprises or individuals to use it for commercial purposes. Enterprises or individuals are also permitted to modify the source code without having to release the modified model as open source.

In short, Zhiyun Group has made GTAI6 publicly available, and everyone can use it freely...

Of course, there are conditions too!
GTAI only supports the YUDA ecosystem of Zhiyun Group and does not support the ecosystems of other companies... Other companies can use GTAI, but they have to purchase APO graphics cards.

In addition to GTAI6, Zhiyun Group also announced several other free large-scale models at the launch event, covering multiple fields such as robotic arms and autonomous driving...

The new GTAI6 and other free large models are all created by Zhiyun Group to further promote the popularization and application of artificial intelligence technology... Zhiyun Group is very considerate in providing customers with various big data models so that customers can just buy a graphics card and use them.

This kind of nanny-style service allows even companies with little technological content to boast that they have developed and applied some kind of artificial intelligence technology!
Indian companies love doing this!

In the first half of this year alone, Indian companies have released more than ten artificial intelligence models... Of course, those in the industry know that apart from the interface and font, which are developed in-house, the core algorithms are all GTAI and other free and open-source algorithms from Zhiyun Group.

In early November, Zhiyun Group launched GTAI6 and other free algorithms on a large scale. In mid-November, Zhiyun Group invited core executives from several strategic partners to visit Zhiyun Group.

Besides domestic companies like Baidu and Taobao, there are also overseas companies such as Google, Microsoft, Facebook, Apple, and Amazon... These are all major customers of Zhiyun Group's APO graphics cards, and they are also major players in the artificial intelligence market besides Zhiyun Group.

The purpose of inviting them was simple: the quantum computer project team had already built a prototype for export, and they wanted to come and see it and reveal some performance parameters so that the team would have a general idea... Go back and prepare the money!
These superconducting quantum computers are very expensive, and a small number won't be effective. You need to buy at least dozens of them and use them with APO graphics cards to significantly increase the total computing power while reducing computing costs to some extent.

Once we've secured these strategic clients, we can officially launch and go public!

This time, Zhiyun Group not only wants to make a fortune, but also wants to take this opportunity to further promote the rapid development of artificial intelligence technology worldwide!
As a provider of computing hardware, and one that holds a near-monopoly in the field, Zhiyun Group is very concerned about and eagerly hopes that the global artificial intelligence market can continue to develop!
(End of this chapter)