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Anthropic · OpenAI · China · U.S. · Funding Round ·

Chinese enterprise software companies primarily sell into the domestic market, which limits their revenue base

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Alvin Yap, Asia CEO for EquitiesFirst.

To be sure, the next generation of AI ventures may not need vast amounts of capital to build applications on top of existing models or fill the gaps in the tech value chain.

Key facts

Summary

By many measures, China is fast catching up with the U.S. in AI development. Chinese models have gone from 1.2% of token traffic (a common way to calculate AI usage) in 2024 to more than half of the total by the summer of 2026. In the past, Chinese entrepreneurs looked to state guidance funds and venture capital backing, but policy-driven funds are known to prioritize later-stage startups while early-stage venture capital is only recovering from a three-year fundraising drought. There are three reasons why broader funding channels should be a priority for entrepreneurs in the AI economy. First, inflation is taking hold inside the AI economy.

Read full article at Fortune Technology →

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