Complete Gate Post tasks to upgrade your rank

Credit Ranking

[//]:content-type-MARKDOWN-DONOT-DELETE
![](https://gimg2.gateimg.com/image/article/1715753397rdzz.jpeg)
## [TL; DR]
China’s Zhapu Ai, Moonshot AI, 01.AI and MiniMax are some of the leading AI startups in the country. 

Baidu, Alibaba and Tencent have been financially supporting AI startups in China. 

The geopolitical tensions between China and the United States may negatively affect the growth of the Chinese AI sector. 

## Introduction 
The artificial intelligence frenzy started when ChatGPT was launched in 2023. After that many other large firms like Meta ventured into the sector. However, in 2023 China seemed to lag behind other leading economies such as the United States in the adoption of AI technologies. The current trend, though, indicates that China is presently very active in terms of AI unicorns. This article covers China’s progress in promoting AI technology. 
## The Emergence of Chinese AI Unicorns
Many Chinese AI start-ups are ramping their efforts to keep pace with AI developments in other countries, especially the United States. What makes their efforts significant is the fact that ChatGPT, the leading generative AI services provider, is currently not available in China. This means that there is high demand for  AI services in that country.

Four leading Chinese Generative Artificial Intelligence unicorns have a valuation of over $1 billion each, showing significant progress in the sector. Globally, though, OpenAI - the San Francisco-based AI firm - remains the leader with a valuation of over $80 billion. The fact that its AI chatbot, ChatGPT, is not available in China shows the significance of the stiff competition among leading Chinese generative AI firms. 

Despite China lagging behind the United States in terms of generative AI technology, it remains a strong hub for technological innovation, with over 369 unicorns. Notably, more than 25% of the Chinese unicorns operate in artificial intelligence (AI) and related sectors, such as the semiconductor production industry. 

Compared to the other 15 sectors the AI industry in China has the highest number of unicorns showing the high effort the country is making in  investing in the AI sector. According to the [Global Unicorn Index](https://www.hurun.net/en-US/Info/Detail?num=9K1G2SK5X7CX "Global Unicorn Index"), AI unicorns in China have an average valuation of US$6.57 billion. Also, out of the 369 unicorns the AI startups China account for 14.1% of the investment the Unicorns have made.

Overall, though, China still lags behind the United States. For example, in last year’s tally the United States had 700 unicorns while China had 340. This is in relation to the global tally of 1,453 unicorns. 

Read also: [Crypto Unicorns Game Guide: How to Play and Earn](https://www.gate.io/learn/articles/crypto-unicorns-game-guide/1598 "Crypto Unicorns Game Guide: How to Play and Earn")
## Local Investors Support Startups in China
The interesting thing is that Big Tech companies like Tencent Holdings, Alibaba and Baidu incubated most of the leading AI unicorns. Despite the fact that over 70% of the 369 Chinese unicorns received financial support from foreign investors, established local tech firms including HongShan, Citic Capital and Tencent supported many of these companies. 

For example, Alibaba, the e-commerce giant, has backed three ventures in the AI space which include 01.AI and Baichuan. Tencent has also invested in several AI technology development firms like Zhipu, from Tsinghua University. 
## Leading the Pack: Zhipu AI and Moonshot AI
The leading Chinese startups that are venturing in generative artificial intelligence include Zhipu AI, MiniMax, Moonshot AI and 01.ai. Also, these are examples of venture capital Chinese unicorns that have received financial support from local Tech companies like Baidu. In all, these tech startups have raised more than Rmb14.3bn ($2bn) in the first quarter of 2024 to expand their operations. 

Likewise, a total of 262 AI-focused start-ups are strong ChatGPT alternatives for the Chinese market. Their strong OpenAI competition may extend beyond the Chinese borders. Let’s take a brief look at the activities of a few tech firms that are focusing on artificial intelligence investment in China. 

**Zhapu AI**: Based on the number of employees, Zhapu AI has become the largest AI startup China. With a valuation of over Rmb18bn ($2.5bn) Zhapu has more than 800 employees. As hinted earlier on, this AI firm is supported by leading tech companies which include Alibaba Cloud, Tencent, and Xiaomi. As a result, the Alibaba Tencent AI investment has helped Zhapu’s GLM model to become the fourth largest player a huge AI market share China. 

**Moonshot**: Moonshot, with a valuation of over $2.5 billion, focuses on students and office workers who use digital assistants when carrying out their tasks. For example, they may want to summarize texts to make it easier to comprehend or to optimize search results. In March alone, Kimi, Moonshot’s AI chatbot, had more than 12 million visits. 
## The Gaming and Productivity Sectors: MiniMax and 01.ai
Some of the leading AI startups are MiniMax, a Shanghai-based firm and 01.ai which focuses on productivity. MiniMax is valued at $2.5 billion while 01.AI has a valuation of $1.2 billion. 

**MiniMax**: MiniMax is in the gaming sector with its anime-themed AI characters, which engage users. The avatars interact with the users and generate various responses based on existing scenarios. MiniMax's app, Glow, enables users to create virtual characters they can chat with.

**01. AI**: 01.AI uses open-source AI models tailored for the Chinese market. Built on Meta’s free-to-adapt Llama architecture, 01.AI’s Yi—a series of open-source models—performs well in coding, reasoning, reading ability, and Maths. 

Read also: [AI Predicts China Will Ban High-Energy Blockchains](https://www.gate.io/post/CryptoNews_/status/5619305 "AI Predicts China Will Ban High-Energy Blockchains")
## The Broader Chinese AI Landscape
The generative [AI as well as the blockchain and cryptocurrency](https://www.gate.io/learn/articles/the-combination-of-ai-and-blockchain-and-related-legal-risks/2273 "AI as well as the blockchain and cryptocurrency") China sectors heated up in 2023 following OpenAI and other US AI companies’ announcements of their AI models and future prospects. In response, leading  Chinese tech giants that include Alibaba, Tencent and Baidu developed their LLMs. 

Generally, there is a high AI adoption in different sectors of the Chinese economy including the high-tech, finance and retail sectors. For instance, there are many AI applications for the service industry that enable firms to engage with customers meaningfully, thereby promoting loyalty and generating much revenue. 

In the very near future, Chinese unicorns may contribute significantly to the transportation, logistics, and automotive sectors. They may also help increase productivity in enterprise software and healthcare facility development. For example, AI will play a major role in self-driving vehicles and road accident prevention. 
## Challenges Chinese AI Unicorns May Face
Geopolitical tensions are likely to affect the performance of Chinese AI unicorns and the blockchain and cryptocurrency China sectors. For example, the greatest geopolitical tension AI technology would impact would be the shortage of essential components that usually come from developed countries like the United States.  

For instance, recently the United States administration, led by President Joe Biden, banned the sale of Nvidia Corp’s advanced AI semiconductors to Chinese customers as it alleges that China may use them to train AI models for military applications. Thus, the shortage of essential components may put much pressure on the AI and semiconductor sectors China. Worse still, US based manufacturing firms may stop investing in sensitive technologies in China that are important for the growth of the AI sector. 

Second, the geopolitical tension between China and the United States will hinder fundraising efforts of Chinese Tech startups. For example, the United States trade and investment restrictive measures may prohibit US based venture capitals to provide funding for Chinese AI unicorns which may affect their potential. As an example, the shortage of vital components may retard Moonshot AI growth and MiniMax gaming AI expansion. 
## Conclusion 
China’s AI sector is developing at a fast rate as billions of dollars are being channeled to the industry on a yearly basis. For example, several leading AI unicorns in China have valuations of over $1 billion each. Zhipu AI, 01.AI, Moonshot AI and MiniMax are examples of major AI firms in China. The good thing is that big tech companies like Alibaba, Tencent, Baidu and Xiaomi have funded some of these AI startups China. 

<div class="blog-details-info">
<div>Author:** Mashell C.**, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

English

日本語

China’s Zhapu Ai, Moonshot AI, 01.AI and MiniMax have invested over $1 billion each in AI technologies.

福利中心

铭文导航-铭文Launchpad

铭文-铭文导航

铭文-web3startup

新币挖矿

小红花-Exchange-Startup

交易-创新交易

交易-盘前交易

打新

小红花-Learn & Explore-博客

小红花-Learn & Explore-快讯

币圈-币圈-未来事件

小红花-Learn & Explore-聊天室

小红花-Learn & Explore-直播

小红花-Learn & Explore-动态

年度账单

币圈

Gate OTC

芝麻金融-更多-财富管理

机构-APIs

机构-大宗交易服务

机构-经纪商项目

全球做市商计划

机构-托管和资产管理

机构-借贷服务

机构-做市商项目

小红花-Promotions-机构和VIP服务

量化基金

机构-基础架构

机构-交易

机构-金融

结构化产品

机构-主页

衍生品-统一账户

芝麻金融-更多-抵押借币

机构

策略跟单

现货跟单

合约跟单

跟单

量化策略-探索

量化策略-进阶

量化策略-基础

机器人广场

创建机器人

探索机器人

杠杆网格

无限网格

期现套利

组合指标策略

智能调仓

现货马丁格尔

合约网格

现货网格

交易机器人

芝麻金融-更多-ETH2.0挖矿

芝麻金融-更多-法币借贷

USDE挖矿

链上赚币

芝麻金融-理财-双币宝

芝麻金融-理财-定期理财(屯币)

芝麻金融-理财-结构性理财

芝麻金融-理财-理财宝

芝麻金融-理财-余币宝

GT挖矿

芝麻金融-更多

芝麻金融-理财

赚币

衍生品-实盘跟单

衍生品-期权

衍生品-交割合约

衍生品-永续合约

衍生品-合约中心

新手引导(合约)

合约活动

衍生品

交易-量化策略

交易-杠杆ETF

交易-杠杆交易

交易-闪兑

交易-现货交易

交易

行情

买币-gateCard

买币-法币交易

买币-银行账号

买币-快捷交易

买币-信用卡

买币-paywith

买币

小红花-推广

新手指南

活动中心

小红花-Learn & Explore-学院

任务广场

小红花-Exchange-最新公告

小红花-Exchange-帮助中心

小红花-Exchange-交易所

gate商店

小红花-Promotions-推荐官计划

小红花-Promotions-邀请计划

小红花-promotions-代理商

cextg小程序

小红花

web3

The Rise of Chinese AI Unicorns and a Battle with OpenAI