China’s generative artificial intelligence (GenAI) sector has seen more funding but fewer deals so far this year, as investors become more selective amid a crowded market, according to industry data.
China’s GenAI industry closed 113 deals as of Dec. 18, about 20 percent fewer than the 143 deals last year, according to data compiled by Itjuzi.com, a startup database service.
However, total funding has reached 35 billion yuan ($4.8 billion) this year, compared with 20.5 billion yuan last year, suggesting investors are becoming more selective as they grow wary of a crowded market amid uncertainty over the monetization of new AI products.
China’s four leading AI startups, Beijing-based Zhipu AI, Moonshot AI, Baichuan and Shanghai-based MiniMax — collectively known as China’s AI Tigers — have raised a combined $2.1 billion this year, according to company data and media reports, accounting for nearly half of the total funding that has entered China’s GenAI market this year.
Zhipu AI CEO Zhang Peng presents the GLM-4 at Zhipu’s Development Day in Beijing, Jan. 16, 2024.
Photo: The Bulletin
Zhipu AI announced its fourth funding round of the year on Tuesday, adding $412 million to its war chest as the company branches out to fend off competition in the market, with a total of 252 GenAI services ranging from AI chatbots to custom AI-powered industry solutions approved by the Chinese government.
