Startups · Ben Buzz · Jan 6, 2026

Emerging Chinese AI Startups Gaining Traction

Backed by Tencent and Shanghai’s government, the company released 11 foundational AI models last year. Other notable startups include ModelBest, founded in 2022 by Tsinghua University researchers, Zhipu AI, and Infinigence AI, all making significant strides in AI innovation and development. Among these, the Step-2 model boasts over 1 trillion parameters, making it a powerful tool in the AI arsenal.

As the global race to advance artificial intelligence (AI) technology intensifies, several emerging Chinese AI startups are making significant strides. Founded in the recent years, these companies are leveraging robust backing from major corporations and local governments to develop innovative AI models and solutions. This article examines four notable startups that are gaining traction in the competitive AI landscape.

Stepfun: Pioneering AI Models

Stepfun, founded in April 2023, has quickly established itself as a formidable player in the AI sector. Backed by Tencent and Shanghai’s government, the company released 11 foundational AI models last year. Among these, the Step-2 model boasts over 1 trillion parameters, making it a powerful tool in the AI arsenal. Despite its impressive scale, it is ranked behind industry giants such as ChatGPT and DeepSeek.

Additionally, Stepfun’s Step-1V model has gained recognition for its capabilities in processing visual inputs. This model is highly ranked on platforms like Chatbot Arena, highlighting the company’s competitive edge in the field of AI-driven visual analysis.

ModelBest: Academic Excellence Meets AI Innovation

Another noteworthy player, ModelBest, was founded in 2022 by researchers from Tsinghua University. The company has developed MiniCPM 3.0, a model that matches the performance of GPT-3.5 with a mere 4 billion parameters. This achievement underscores ModelBest's ability to optimize AI efficiency and performance, drawing significant attention from both industry and academia.

ModelBest’s success is further cemented by its strong ties to government and academic institutions, which provide a fertile ground for collaboration and innovation in AI research and development.

Zhipu AI: Bridging Government and Academic Efforts

Zhipu AI is another emerging startup that benefits from its close connections with government entities and academic circles. The company’s GLM-4-Plus model is noted for matching the performance of GPT-4, reflecting its potential to compete with leading international AI models.

The strategic partnerships and support Zhipu AI enjoys play a crucial role in its ability to push the boundaries of AI technology, fostering an environment conducive to groundbreaking advancements.

Infinigence AI and Baichuan AI: Innovating with Computing Clusters

Infinigence AI, also founded in 2023, focuses on the development of heterogeneous computing clusters. This approach allows the company to optimize the processing capabilities of AI models, ensuring high efficiency and scalability. Such technological advancements are critical as the demand for AI solutions grows across various industries.

Similarly, Baichuan AI, founded in the same month, is contributing to the AI landscape by revolutionizing applications in areas like lending and fraud detection. Their innovations include AI-powered sentiment analysis and machine learning (ML) tools for credit scoring, which are transforming financial services by enhancing decision-making accuracy and efficiency.

AI in Financial Services

The integration of AI into financial services is exemplified by companies like Edge Hound and Zest AI. Edge Hound specializes in sentiment analysis, providing valuable insights into consumer behavior and market trends. Zest AI leverages machine learning to improve credit scoring systems, offering more reliable assessments of creditworthiness.

Parafin and Socure are also at the forefront of this transformation. Parafin focuses on small business loans, utilizing AI to streamline the lending process. Socure excels in fraud detection and verification, employing sophisticated algorithms to safeguard transactions and protect consumers.

Hawk AI and Gynger further illustrate the impact of AI in finance. Hawk AI offers real-time transaction monitoring, enhancing security and compliance in financial operations. Gynger’s AI underwriting solutions enable faster approvals, benefiting both lenders and borrowers by expediting the lending cycle.

Robotics and Drone Development

In addition to financial applications, AI startups are making strides in robotics and drone development. Companies like DeepSeek, Agility AI, and Anduril are notable mentions in this domain. These firms are exploring the capabilities of AI in automating tasks and advancing technologies such as vibe-coding software, which can enhance the functionality and efficiency of robotic systems.

The advancements in robotics and drones highlight the versatility of AI technology and its potential to revolutionize various sectors beyond finance and data analysis.

As Chinese AI startups continue to innovate and expand their capabilities, their influence on the global AI landscape is likely to grow. By leveraging strategic partnerships and cutting-edge technology, these companies are well-positioned to make significant contributions to the future of AI development.

FAQs

How many foundational AI models did Stepfun release last year?
Stepfun released 11 foundational AI models last year.
What is the total number of parameters in the Step-2 model?
The Step-2 model has over 1 trillion parameters as of 2023.
How many parameters does the MiniCPM 3.0 model have?
The MiniCPM 3.0 model contains 4 billion parameters as of 2022.
When was Stepfun founded?
Stepfun was founded in April 2023.
What performance level does ModelBest's MiniCPM 3.0 match?
MiniCPM 3.0 matches the performance of GPT-3.5.
What is Zhipu AI's GLM-4-Plus model known for?
The GLM-4-Plus model is noted for matching the performance of GPT-4.
What industries are benefiting from AI innovations by startups like Infinigence AI?
Industries such as finance and robotics are benefiting from AI innovations by startups like Infinigence AI.