China’s Top 10 Most Promising AI Startups After DeepSeek

The meteoric rise of DeepSeek - the Chinese AI startup now challenging global giants—has thrust China's AI sector into the global spotlight. Since the release of ChatGPT in 2022, China's tech ecosystem has been racing to create homegrown alternatives. While major players like Alibaba and ByteDance continue to dominate, a new wave of nimble startups is emerging, carving out specialized niches in a fiercely competitive market.

As China’s AI ambitions intensify, the landscape is being shaped by a select group of rising stars.

Below, we profile 10 of the most promising AI startups beyond DeepSeek, many of which are already attracting global attention.

1. Manus

Manus is a general AI agent

Founder: Information not publicly disclosed

Manus has developed an autonomous AI agent capable of independently executing complex real-world tasks based on a single prompt. The startup is focused on building highly adaptive AI agents that could be deployed in enterprise automation, robotics, and logistics.

Strengths: Manus emphasizes true autonomy, reducing the need for human-in-the-loop supervision, and offers impressive multimodal capabilities.

Weaknesses: Concerns around operational consistency in unpredictable environments, as well as regulatory scrutiny over autonomous decision-making systems.

Outlook: Positioned to disrupt sectors requiring task automation, Manus is building a reputation as a leader in the next wave of autonomous AI.

Funding: Details currently undisclosed but rumored to be preparing for a major Series A round.

Read more: Manus AI Startup: How China’s Next DeepSeek Is Redefining Autonomous AI

2. StepFun

StepFun

Founder: Jiang Daxin, former Senior Vice President at Microsoft

Launched in 2023, StepFun has quickly become a heavyweight in the development of foundational AI models. Its portfolio includes 11 models spanning language, vision, audio, and multimodal systems. The flagship model, Step-2, features over 1 trillion parameters and ranks among the world’s top-performing models on industry benchmarks.

Strengths: StepFun’s commitment to AGI and its multimodal AI capabilities have earned widespread recognition.

Weaknesses: Faces steep competition from other Chinese tech giants and resource-heavy research demands.

Outlook: StepFun is collaborating with app developers to build services on its APIs, showing strong momentum with surging external demand.

Funding: Backed by Tencent and Shanghai government funds, raising tens of millions of dollars to date.

3. ModelBest

ModelBest

Founder: Researchers from Tsinghua University

Established in 2022, ModelBest focuses on lightweight AI models designed for real-time, on-device processing. Its MiniCPM series is optimized for mobile devices, automotive systems, and smart home products. The flagship MiniCPM 3.0 model, with only 4 billion parameters, rivals GPT-3.5 in performance while offering low-latency processing.

Strengths: Focus on efficiency, data privacy, and edge deployment makes ModelBest appealing for industries like IoT and automotive.

Weaknesses: Smaller models could be limited in handling highly complex tasks compared to larger models.

Outlook: Well-positioned to lead in embedded AI solutions for smart devices.

Funding: Secured multi-million-dollar Series C funding in late 2024.

4. Zhipu AI

Zhipu AI

Founder: Researchers from Tsinghua University

Zhipu AI has built advanced foundational models including the GLM-4-Plus and GLM-4V-Plus, capable of text and video interpretation. The company also launched Ying, a video generation tool comparable to OpenAI’s Sora.

Strengths: Strong government and academic backing, with models benchmarked against GPT-4.

Weaknesses: Recently added to the U.S. government’s trade restriction list, posing challenges to its international ambitions.

Outlook: Despite geopolitical hurdles, Zhipu is on track for an IPO and continues expanding its AI product portfolio.

Funding: Valued at over $2 billion with support from Beijing-affiliated investment funds and top-tier VCs.

5. Infinigence AI

Infinigence AI

Founder: Information not publicly disclosed

Founded in 2023, Infinigence AI focuses on infrastructure solutions, building heterogeneous computing clusters that combine chips from AMD, Huawei, and Nvidia. Its HetHub system aims to reduce AI model training time by optimizing how disparate chipsets work together.

Strengths: A critical player in circumventing U.S. chip sanctions by pioneering heterogeneous compute solutions.

Weaknesses: Faces stiff competition from other infrastructure firms and chip suppliers.

Outlook: Could become a key enabler of AI development for Chinese companies restricted from

accessing U.S. chip technologies.
Funding: Raised $140 million to date, supported by several prominent Chinese venture funds.

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6. Baichuan AI

Wang Xiaochuan

Founder: Wang Xiaochuan, founder of Sogou

Baichuan AI focuses on foundational models for domestic sectors such as healthcare and government services. It’s part of China’s broader push to localize AI technologies for regulated industries.

Strengths: Deep market knowledge and experienced leadership with strong government ties.

Weaknesses: Slower to expand globally due to its domestic-market-first strategy.
Outlook: Baichuan is likely to dominate AI services in China’s regulated sectors such as health tech.

Funding: Valued at over $2 billion following its most recent funding round.

7. MiniMax

MiniMax

Founder: Yan Junjie, AI veteran

MiniMax is best known for Talkie, a companion chatbot platform that has outpaced competitors like Character.ai in user growth. The company has shifted its focus from foundational model training to application-level AI, targeting global users seeking virtual companionship.

Strengths: Leading consumer-facing chatbot platform with a strong international user base.

Weaknesses: Heavy reliance on AI companionship may limit long-term diversification.

Outlook: Poised to dominate the AI-powered virtual companion market globally.

Funding: Reported revenue exceeded $70 million in 2024.

8. Moonshot

Founder: Yang Zhilin, AI researcher with experience at Tsinghua University and Carnegie Mellon University

Moonshot created Kimi, one of China’s most popular AI chatbots with over 13 million users. Kimi excels in handling ultra-long input texts, which has gained favor with professionals and students alike.

Strengths: Robust long-context capabilities and an engaged user community.

Weaknesses: Internal restructuring and reduced emphasis on foundational model research have raised questions about long-term direction.

Outlook: Moonshot is recalibrating to focus on core domestic markets and practical AI applications.

Funding: Valued at approximately $3 billion and backed by Alibaba and top venture capital firms.

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9. 01.AI

Founder: Kai-Fu Lee, former Google China President

01.AI aims to democratize AI by building open-source foundational models for Chinese developers and enterprises. Its Yi-34B bilingual model has received widespread adoption on platforms like Hugging Face and GitHub.

Strengths: Open-source commitment and experienced leadership team led by one of China’s most influential AI figures.

Weaknesses: Balancing open-source innovation with commercial pressures from large tech rivals.

Outlook: 01.AI is shaping up to be the open-source leader in China’s enterprise AI sector.

Funding: Estimated valuation of $1 billion, with backing from Sinovation Ventures.

10. PixVerse

Founder: Team of ex-TikTok engineers

PixVerse focuses on AI-generated video content. Its platform enables users to create short-form videos from text prompts, targeting content creators and marketers. PixVerse is capitalizing on the rising demand for AI-driven creative tools in China’s social media ecosystem.

Strengths: Combines video generation technology with intuitive UX, targeting creators and influencers.

Weaknesses: Faces competitive pressure from ByteDance and other video-centric AI startups.

Outlook: Positioned to become a leader in generative video tools, especially within China's fast-growing creator economy.

Funding: Raised $60 million in Series A funding, with participation from Sequoia China and key angel investors.

Final Take

China’s AI startup scene is rapidly evolving, and these companies exemplify the nation’s growing ability to compete with Silicon Valley heavyweights. From foundational model builders like StepFun and Zhipu AI to application-focused firms like MiniMax and PixVerse, the ecosystem is diversifying fast.

With continued geopolitical headwinds, a rush toward efficiency, and billions in venture funding, these AI startups are redefining the next era of AI innovation—on their terms.

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