[News] Despite Geopolitical Tensions, China’s AI Startups Break into the U.S. with Products like Chatbots

---

---

In light of slow revenue growth in the Chinese market, China’s AI startups are seeking to enter the U.S. market in pursuit of overseas growth opportunities, following the successful model of the short video platform TikTok, according to a report by Commercial Times.

According to a report by the Financial Times, despite U.S. restrictions on chip exports to China, the country still maintains a competitive advantage in launching products like chatbots that do not require substantial computing resources.

The report highlights that Chinese AI companies, including MiniMax, TikTok’s parent company ByteDance, and 01.AI, have introduced AI products overseas, particularly targeting the U.S. market, which boasts a larger base of high-end consumer users.

These Chinese app companies have seen significant success. For instance, the report in Commercial Times points out that the majority of MiniMax’s sales stem from its chatbot application “Talkie,” which has gained immense popularity among American teenagers.

Shanghai-based MiniMax has made major breakthroughs in the past year, and the company plans to reach a sales target of USD 70 million in 2024, Commercial Times notes.

The Financial Times report also highlights that Chinese company ByteDance has launched several AI apps internationally. ByteDance’s photo editing application “Hypic,” along with Zuoyebang’s homework assistant “Question AI,” both made it into the top 20 downloads internationally.

However, according to the Financial Times report, Chinese companies still face certain challenges. Firstly, the opportunities for revenue growth are limited due to the high costs associated with training language models, which can negatively impact the potential of these companies. Additionally, to mitigate external risks, Chinese firms need to take measures such as placing servers outside of China to avoid the potential crisis of TikTok being banned in the United States.