Wu Hai, Chairman of China Internet Investment Fund Management Co., Ltd., delivered a speech

On September 26, the Open Source Ecological Forum was held in Wuzhen, Zhejiang Province. In the fourth session of the forum, Wu Hai, Chairman of China Internet Investment Fund Management Co., Ltd., delivered a speech entitled "Discovering Open Source Value to Help Open Source Development".

Wu Hai, Chairman of China Internet Investment Fund Management Co., Ltd

The full text is as follows:

Dear leaders, experts, and guests: Good afternoon. It is a great honor to participate in this forum as a representative of the investment community, and to share with you some of our superficial understandings and thoughts on discovering the value of open source and helping the development of open source through capital.

First of all, investment is always based on some basic judgment of value, so what kind of value is reflected in open source software? We have the following understanding:

First, open source software is very innovative. The development of the entire open source software, along with the overall development of the Internet, runs through different stages. For example, in the era of PC and desktop software, the concept of open source has just emerged, including some geeks and non-governmental organizations have created open source organizations; in the era of the Internet and mobile Internet, the entire open source software has been systematically developed, because we have more and more application scenarios, and the changes and needs of these scenarios are very large, so in this process, the flexibility and adaptability of open source software are better, and there are many large Internet platforms that have begun to use open source software; now the era of "cloud wisdom", Open source software has shown the development of platformization, and we can see that all aspects have become important contributors to open source software.

Second, open source does have strong industrial value. According to the latest report of the Academy of Information and Communications Technology, 97% of software developers and 99% of enterprises in the world use open source software, and the number of domestic enterprises using open source software in 2020 will reach 82.2%. From open source software to open source hardware, to open source instruction sets, chip design, open source ecological map is slowly expanding, slowly becoming the base and cornerstone of information technology and industrial development. For example, O-RAN is a white-element system that makes 5G small base stations push faster. Ros system is a set of open source systems for open source robot systems, and now it is also adopted and applied by many equipment manufacturers, including the RISC-V system mentioned many times in the conference theme, which is also the direction of everyone's promotion, so it is very valuable to the industry.

According to the latest statistics of OPEN EK, there were 260,000 open source developers in the European Union in 2017, and their contribution also promoted the growth of the entire EU GDP of 0.4%, so the promotion value of the industry is very obvious, and it can generate more than 63 billion euros of contribution.

Third, ecological value. In the development of open source communities, whether it is individuals or scientific research institutes, foundations and enterprises, they can most easily get the most cutting-edge innovation results, and at the same time, everyone can also contribute to the community by contributing to the way of technology, making the community more attractive and making the ecology and collaboration smoother.

Based on the recognition of the value of open source, we believe that open source will gradually form open source rules and business models, and through the tolerance of commercial licensing, it is divided into community-friendly, commercially restrictive and business-friendly.

Open source itself has a traditional model based on software and technical services, a model based on limited open Open Core, and an Internet model based on traffic monetization, such as Google Play.

Open source projects have indeed received great attention from financial resources and industrial institutions, and recently the entire open source project has developed rapidly. The drag management project has grown by more than 40% in recent years, so ping CAP has also received multiple financing in China, and has received 500 million US dollars of investment; in foreign Gitlab has also received 700 million US dollars of investment, with a valuation of more than 6 billion US dollars. These are all enterprises that are deeply rooted in the open source community, including startups, which have a good entrepreneurial value system.

From our investment perspective, which open source companies can attract the attention of investment institutions?

First of all, we pay special attention to enterprises that can actively integrate into the open source ecosystem and have the ability to re-innovate. For example, in the field of operating systems, databases, cloud computing, and large computing, especially the RISC-V system that everyone is talking about today. We are also very grateful to the experts of the Chinese Academy of Sciences for their help to our investment institutions, and have specially sorted out and helped us systematically. In the process, together with some of our partners in industry alliances, we have also invested in some of risc-V's leading companies, including RISC-V processors.

The second category is companies where Internet and IT giants improve their solution capabilities through open source and mergers and acquisitions of open source software. In this process, it can promote the combination of developers and upstream and downstream ecosystems, especially startups can quickly cut into the user side. Including Huawei's Euler system, Hongmeng system, etc., it is very helpful for the rapid ecological promotion of the industry. In addition, some well-known international institutions, including Mysql zimbra, are billions of dollars, tens of billions of dollars of institutions, which are very valuable investment institutions.

In the third category, we are also focusing on open source software, security, system integration and operations service segments. Open source software applications, users are also many small and medium-sized enterprises, and do not have some capabilities in open source software security or system maintenance, in this regard, we also see foreign system monitoring, as well as open source software implementation of integrated solutions in the enterprises have been well recognized by the capital market, but also a great contribution to open source software, so we are also looking for such enterprises with outstanding capabilities in The country, as our investment targets.

The fourth category focuses on frontier technologies and the future laws of the competitive landscape. Through open source can improve the application effect, accelerate the commercialization process, such as in the quantum field in the early investment in the origin of quantum, which is also our Academy of Sciences system, the team of academician Guo of the University of Science and Technology of China, the entire quantum development environment, operating system, programming tools, etc. are open source processing, but also a good promotion of research and commercialization in the quantum field. In addition, we have also invested in SenseTime in the field of artificial intelligence, which is a pioneer in this field and has a lot of cooperation with various universities. Open mlit provides more than 100 public algorithms and more than 600 computing power and models, and has also made a good contribution to the cultivation of open source software talents. Therefore, we also hope to unite more investment institutions and work with the enterprises and experts present here, including entrepreneurs, to further enrich and develop the open source ecosystem.

Thank you.