China isn’t catching up in AI anymore. It’s competing. From large language models to AI agents and smart infrastructure, Chinese companies are moving fast. They’ve got talent, government support, and founders who work around the clock.
One place where this is clear is Hangzhou. Once known mainly for Alibaba, the city is now full of AI startups like DeepSeek and Doubao. As New York Times reporter Meaghan Tobin noted, engineers there work from cafés and living rooms, pitching ideas while vaping or coding at 2 a.m.
The tools are still being built. But the momentum is real.
Here are 10 companies shaping China’s AI future.
1. DeepSeek
What it does: Large language models and generative AI
Started in Hangzhou by researchers from Zhejiang University, DeepSeek made headlines in January with a powerful LLM built at low cost.
Key numbers:
- 33.7 million monthly users
- 22.15 million daily users
- Used by over 1,000 companies
- In 25% of AI apps launched this year
2. SenseTime
What it does: Computer vision, smart cities, facial recognition
One of China’s oldest AI players, still key in surveillance, transport, and automation.
Key numbers:
- $235 million revenue in the first half of 2024
- 21% year-over-year growth
- 16% share of China’s LLM market
3. MiniMax AI
What it does: Generative AI for video, content, and avatars
Its AI companion app, Talkie, went viral.
Key numbers:
- Over $70 million in projected revenue
- Top 3 worldwide for AI companion downloads
4. Manus
What it does: AI agents for tasks like booking travel and analyzing data
Started quietly in Hangzhou’s startup scene. Gaining fast attention.
Key numbers:
- Valued at $500 million
- 2.6 million people on waitlist within weeks of beta launch
5. Hunyuan (Tencent)
What it does: Natural language and reasoning AI for Tencent’s products
Powers WeChat, games, and other core platforms.
Key numbers:
- WeChat: 1.327 billion monthly users
- Tencent revenue: over $105 billion in 2025
- Deployed across all major Tencent apps
6. Qwen (Alibaba Cloud)
What it does: LLMs for businesses, media, and consumer tools
Built into Alibaba’s cloud services. Open-source friendly.
Key numbers:
- Over 300 million downloads
- More than 100,000 forked versions
- Alibaba Cloud revenue: $16.26 billion
7. Doubao (ByteDance)
What it does: Chatbots and conversational AI
Deeply tied into ByteDance’s content engine.
Key numbers:
- Around 60 million monthly users
- Most-used chatbot in China
8. Stepfun
What it does: Multimodal models with AGI goals
Not much public info yet, but developers are interested.
9. Baichuan AI
What it does: LLMs focused on healthcare and diagnostics
A strong player in regulated industries.
Key numbers:
- Valued at over $2 billion
10. Moonshot
What it does: Long-context AI for chat and memory-based tools
Its Kimi chatbot is popular and backed by major investors.
Key numbers:
- Kimi: 12.8 million monthly users
- Backed by Alibaba and top Chinese funds
Honorable Mentions
- Zhipu AI: Known for open-source work and university ties
- 01.AI: Part of the “Six Tigers,” valued over $1 billion
A Different Kind of Tech Hub
As Meaghan Tobin wrote, Hangzhou feels more like a village than a tech campus. Engineers hang out by the lake, build apps in coffee shops, and test prototypes in shared kitchens. Many left companies like ByteDance or Alibaba to work on their own ideas.
Felix Tao is one of them. He used to work at Facebook and Alibaba. Now he hosts pitch nights in his backyard. His startup, Mindverse, builds AI tools that help people organize their lives with more thought and empathy.
Across Dream Town offices and cramped cafés, China’s AI builders are betting on themselves. So far, it looks like a good bet.