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Chinese Startups Surpasses $1 Billion Valuations, Competes With OpenAI in AI Race
May. 03, 2024. 1 min. read.
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Four Chinese AI startups have reached unicorn status with valuations over $1 billion, intensifying competition against OpenAI, especially as ChatGPT is unavailable in China.
In a significant stride within the generative artificial intelligence (AI) sector, four Chinese startups have each achieved unicorn status, crossing the $1 billion valuation mark. This development escalates the competition against industry leader OpenAI, as these firms aim to capitalize on the absence of OpenAI’s ChatGPT in China.
The startups—Zhipu AI, Moonshot AI, MiniMax, and 01.ai—have garnered substantial local investment support. With OpenAI currently leading with a recent valuation boost to over $80 billion as of February 17, these Chinese counterparts are swiftly expanding their teams to innovate and develop comparable AI products.
Despite OpenAI’s dominance, its ChatGPT is not available in China, presenting a unique market opportunity for local startups. According to IT Juzi, 262 AI startups in China aim to offer ChatGPT alternatives to the Chinese audience. Among the frontrunners, Zhipu AI has emerged prominently with a workforce of 800 and a recent valuation of $2.5 billion following a funding round in March. Major regional players including Alibaba Cloud, Tencent, and Xiaomi significantly back the firm.
Similarly, Moonshot AI, also valued at $2.5 billion, targets educational and professional sectors with its AI chatbot, Kimi, which assists in text summarization and has attracted over 12 million visits in March alone.
MiniMax, another notable player valued likewise at $2.5 billion, caters to the gaming community with its anime-themed AI characters that engage users interactively.
On the other hand, 01.ai, though trailing with a $1.2 billion valuation, is making headway with its open-source models tailored for the Chinese market, including its productivity-focused chatbot, Wanzhi.
These companies are strategically positioned to exploit the growing demand for AI technologies in China, driven by robust support from heavyweight investors such as Alibaba, Tencent, and Xiaomi.
Source: The rise of the Chinese AI unicorns doing battle with OpenAI
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