Emerging Chinese AI Startups to Watch in 2025
Supported by investments from Tencent and the Shanghai government, the company has developed an impressive array of 11 foundational AI models within its first year of operation. Bitrig, founded in 2025 by former Apple employees, offers a platform that enables users to create applications through AI-driven chat interfaces. This cohort follows the spring 2025 batch, which included companies like Bitrig and Okibi.
In 2025, a selection of Chinese artificial intelligence startups have garnered attention for their innovative approaches and potential impacts on the AI landscape. With substantial backing from prominent investors and government entities, these startups are poised to advance the capabilities and applications of AI technology.
Stepfun's Advanced AI Models
Founded in April 2023, Stepfun has quickly become a notable player in the AI industry. Supported by investments from Tencent and the Shanghai government, the company has developed an impressive array of 11 foundational AI models within its first year of operation. Among these, the Step-2 model stands out with its over 1 trillion parameters, ranking just behind well-known models like ChatGPT and DeepSeek. Another model, Step-1V, has been recognized for its high performance in handling visual inputs and has achieved a strong ranking on the Chatbot Arena platform.
ModelBest's Academic Roots
ModelBest, which was founded in 2022 by researchers from Tsinghua University, is another Chinese AI startup making significant strides. The company's model, MiniCPM 3.0, exhibits performance comparable to GPT-3.5, despite operating with only 4 billion parameters. This achievement highlights ModelBest's focus on efficiently designed AI systems. The startup benefits from a robust connection to academic research, which supports its ongoing development and innovation efforts.
Zhipu AI's Government and Academic Connections
Zhipu AI is distinguished by its strong affiliations with both governmental bodies and academia. This startup's GLM-4-Plus model has been developed to match the performance of GPT-4, showcasing Zhipu AI's capacity to produce competitive AI models. These connections provide Zhipu AI with unique insights and resources, aiding in their pursuit to advance AI technology.
Infinigence AI's Focus on Computing Clusters
Founded in 2023, Infinigence AI is carving out a niche in the AI sector by focusing on heterogeneous computing clusters. This approach is aimed at maximizing computational efficiency and performance, a critical factor for running complex AI models. Infinigence AI's strategy reflects a broader trend within the industry towards optimizing hardware and software integration to enhance AI capabilities.
Baichuan AI and Y Combinator's Investment in AI Startups
Baichuan AI, also founded in April 2023, is part of a group of startups that have received substantial investment from Y Combinator, a well-known accelerator known for its support of early-stage startups. In a notable move, Y Combinator invested $500,000 across 70 AI startups, including Baichuan AI, as part of their accelerator program. This investment reflects Y Combinator's strategic focus on emerging technologies and their potential to transform various industries. The startups that received these investments have collectively raised millions of dollars, underscoring the promising prospects of these companies.
Within Y Combinator's summer cohort of 2025, nine startups specializing in vibe coding have emerged, showcasing the diverse applications of AI technology. This cohort follows the spring 2025 batch, which included companies like Bitrig and Okibi. Bitrig, founded in 2025 by former Apple employees, offers a platform that enables users to create applications through AI-driven chat interfaces. Similarly, Okibi focuses on automating tasks with AI agents, illustrating the growing trend of using AI to streamline and enhance productivity in various sectors.
These emerging Chinese AI startups, backed by substantial investments and strategic partnerships, are set to make significant contributions to the global AI landscape. Their innovative models and approaches highlight the dynamic nature of the industry and its potential to drive technological advancement.