Emerging Chinese AI Startups to Watch
Founded in April 2023 and backed by Tencent and Shanghai's government, Stepfun has launched 11 foundational AI models, including Step-2 with over 1 trillion parameters, ranking just behind ChatGPT and DeepSeek. Over the past year, Stepfun has launched 11 foundational AI models, demonstrating its commitment to advancing AI technology. Ranked No.
In the rapidly evolving landscape of artificial intelligence (AI), several Chinese startups are making significant strides and attracting attention both domestically and internationally. These companies, which have formed strategic partnerships, developed advanced models, and maintained strong ties with academic and government entities, are poised to challenge established players in the global AI arena. This article highlights four notable Chinese AI startups that have emerged as key players in recent years.
Stepfun: Backed by Major Support and Advanced AI Models
Founded in April 2023, Stepfun has quickly gained traction in the AI community. The company is supported by Tencent and the Shanghai government, enabling it to leverage substantial resources for development and innovation. Over the past year, Stepfun has launched 11 foundational AI models, demonstrating its commitment to advancing AI technology.
Among these models, Step-2, which boasts over 1 trillion parameters, is particularly noteworthy. Despite its impressive capabilities, it ranks just behind prominent AI models like ChatGPT and DeepSeek in performance benchmarks. Another model, Step-1V, is highly regarded for its handling of visual inputs and is ranked prominently on Chatbot Arena.
ModelBest: Bridging Academic Excellence and AI Innovation
Established in 2022 by researchers from Tsinghua University, ModelBest is a shining example of how academic expertise can be translated into cutting-edge AI solutions. The company's MiniCPM 3.0 model is a testament to this, as it matches the performance of GPT-3.5 while utilizing only 4 billion parameters. This efficiency highlights ModelBest's focus on optimizing AI models to achieve high performance with fewer computational resources.
Zhipu AI, another player in the field, maintains a strong connection with both government and academic institutions, further solidifying its position as a significant contributor to China's AI ecosystem. Its GLM-4-Plus model is reported to match the performance of the widely recognized GPT-4, showcasing its competitive edge.
Infinigence AI and Baichuan AI: Focusing on Infrastructure and Computing Power
Infinigence AI, founded in 2023, differentiates itself by concentrating on the development of heterogeneous computing clusters. This focus on infrastructure aims to support the demanding computational requirements of modern AI applications, enabling more efficient processing and analysis of large data sets.
Similarly, Baichuan AI, also established in April 2023, is making strides in the AI sector. Although specific details about Baichuan AI's models and achievements are not as widely publicized, its recent foundation and strategic focus suggest a commitment to becoming a significant player in the AI landscape.
Evotek: Integrating Security and Innovation in IT Solutions
While not exclusively an AI company, Evotek, founded in 2014, has carved out a niche in providing top-level IT solutions with a security-first approach. Ranked No. 92 on the CRN 500, Evotek participated in the 2025 Tech Elite 250, highlighting its influence and reputation in the technology industry.
Under the leadership of CEO Cesar Enciso, a former Cisco executive, Evotek has expanded its team by hiring 11 former Chief Information Security Officers (CISOs) within its first two years. This strategic move underscores the company's commitment to security and its focus on integrating disruptive technologies. Additionally, Evotek evaluates approximately 600 startups annually, helping them with go-to-market strategies and facilitating connections with potential clients.
Recent personnel additions, such as Moudy Elbayadi, former CTO of Shutterfly, have led to new business opportunities. Elbayadi's extensive network has resulted in four new accounts, demonstrating the value of strategic hiring in expanding business horizons.
Y Combinator's Influence on Emerging Startups
The Y Combinator summer cohort of 2025 featured nine 'vibe coding' startups, reflecting the increasing interest in innovative AI applications. Among these, Bitrig, founded by Apple veterans, stands out by enabling app creation through AI chat interfaces. This capability represents a shift towards more interactive and user-friendly software development processes.
Okibi, another startup from the same cohort, focuses on automating tasks using AI agents, illustrating the growing trend of leveraging AI to enhance productivity and streamline operations.
These emerging startups, all founded in 2025, are indicative of the dynamic nature of the AI industry and the continuous influx of new ideas and technologies that keep the sector vibrant and competitive.
In conclusion, these Chinese AI startups exemplify the diverse approaches being taken to address the challenges and opportunities in the AI field. From foundational models and computing infrastructure to security-focused IT solutions and innovative applications, these companies are poised to influence the future direction of AI development both within China and on the global stage.