By South China Morning Post | Created at 2024-12-18 13:01:59 | Updated at 2024-12-18 15:56:42
2 hours ago
China’s generative artificial intelligence (GenAI) sector has seen more funding but fewer deals so far this year, as investors become more picky amid overcrowding in the market, according to industry data.
The Chinese GenAI industry had struck 113 deals as of December 18, around 20 per cent fewer than the 143 last year, according to data compiled by Itjuzi.com, a start-up database service.
However, total funding amounted to 35 billion yuan (US$4.8 billion) this year, compared with 20.5 billion yuan last year, meaning investors are more selective as they grow wary of the crowded market amid uncertainties over monetisation of new AI products.
The four leading Chinese AI start-ups of Beijing-based Zhipu AI, Moonshot AI, and Baichuan, as well as Shanghai’s MiniMax – collectively known as the Chinese AI Tigers – raised a total of around US$2.1 billion this year, according to company statements and media reports, accounting for almost half of the total funding that went into the Chinese GenAI market this year.
Zhipu AI announced its fourth financing round this year on Tuesday, adding US$412 million to its war chest as the company branches out to fend off competition in the market, where a total of 252 GenAI services ranging from AI chatbots to AI-powered bespoke industry solutions have been approved by Chinese government.
