An AI hub takes shape in Shanghai's Zhangjiang Hi-Tech Park. [Photo/Shanghai Observer]

As global tech giants Microsoft and IBM announced the opening of research and development branches in Shanghai's Zhangjiang Hi-Tech Park this month, Zhangjiang AI Island, a 100,000-square-meter hub for the artificial intelligence (AI) industry, is taking shape in China's Silicon Valley.

The island, located in the Pudong New Area, is expected to be a cluster of AI companies, projects and talents with Microsoft and IBM as the two major participants.

The IBM Shanghai headquarters were officially opened on Jan 17, making the company the first enterprise to settle on the island. It incorporates many of the different functions of IBM, including centers for client relations, R&D, company development, design and innovation, and sales.

"IBM should not only be located in Shanghai, but should promote the future development of the city," said Chen Liming, chairman of IBM Greater China Group. According to Chen, IBM has long been committed to leading the way in AI development, and is the creator of multiple milestone technologies in traditional manufacturing, healthcare, education and retail.

Microsoft will launch its largest laboratory on the island in April to apply AI and internet of things technologies in the digital transformation of enterprises in multiple fields, including manufacturing, retail, medicine and finance.

"We are very optimistic about the market prospects of AI in China, and Microsoft will provide the world's most advanced technologies," said Roan Kang, vice president of Microsoft Greater China region.

"The two international giants will lead the development direction of the AI industry and accelerate the construction of an innovative ecosystem on the island," said Yuan Tao, chairman of Zhangjiang Group.

The IBM Shanghai headquarters in Zhangjiang Hi-tech Park [Photo/Shanghai Observer]