The landscape of China’s artificial intelligence sector has witnessed intense competition, particularly among startups looking to establish themselves as strong local alternatives. The launch of ChatGPT in 2022 sparked a wave of innovation, challenging the dominance of major tech players like Alibaba and ByteDance.
Breaking the Monopoly: Startups Rise to Challenge Tech Giants
Once controlled by industry giants, China’s AI sector is now experiencing disruption as smaller startups break through the ranks. These emerging players are not only surviving but also thriving, carving out unique niches and redefining the AI ecosystem.
Key Players in the AI Race: The “Six Tigers” and Emerging Challengers
China’s AI innovation is currently driven by a group of elite startups known as the “Six Tigers,” which include Stepfun, Zhipu, Minimax, Moonshot, 01.AI, and Baichuan. These companies dominate the space but now face competition from rising challengers such as DeepSeek and ModelBest, who are rapidly gaining traction.
Some companies, like Minimax and Moonshot, are shifting their focus away from expensive foundational model training and instead developing AI applications for end users. Others, such as Stepfun and Infinigence AI, are intensifying their research efforts to push the boundaries of AI innovation.
Stepfun: A Rising Power in AI Model Development
Founded in 2023 by ex-Microsoft executive Jiang Daxin, Stepfun has quickly emerged as a leader in foundational AI models. The company has received strong backing from Tencent and the Shanghai government. Its flagship model, Step-2, boasts over 1 trillion parameters and is recognized as a high-ranking contender on industry benchmarks.
ModelBest: Efficient AI at a Smaller Scale
A product of Tsinghua University, ModelBest specializes in developing small-scale, efficient AI models. Its latest innovation, MiniCPM 3.0, contains just 4 billion parameters but competes directly with GPT-3.5 in performance. The company has also attracted significant investment, positioning itself as a key player in China’s AI race.
Zhipu: Pioneering AI Across Multiple Domains
Another leading AI company from Tsinghua University, Zhipu, has built a strong reputation with its ChatGLM chatbot and the Ying video-generation engine. Its GLM-4-Plus model is considered comparable to GPT-4. However, Zhipu has recently faced US trade restrictions due to alleged links to military-related projects, posing challenges for its international growth.
Infinigence AI: AI-Optimized Computing Power
Founded in 2023, Infinigence AI focuses on AI computing infrastructure rather than model development. The company integrates a variety of AI chips into specialized clusters to optimize training under strict US chip sanctions, ensuring that AI training remains efficient despite global supply chain constraints.
Honorable Mentions: Leading AI Innovations in China
Among the most notable players in China’s AI sector is Baichuan, a startup with a strong focus on clinical applications of AI. In the consumer space, Talkie by Minimax has gained widespread popularity, while Moonshot’s Kimi bot has reached an internal milestone with over 13 million users, marking a significant achievement in AI-powered conversational technology.
The Future of China’s AI Race: A Shift in Strategy
China’s AI industry is evolving from a short-term sprint to a long-term marathon. While major corporations still dominate the Asian market, startups like DeepSeek and ModelBest have demonstrated that agility and specialization can compete with sheer scale. As competition intensifies, China’s AI race is only just beginning, with innovation and adaptability shaping the future of the industry.
