The funding comes amidst a surge in interest in generative AI in China, with many startups and tech giants striving to compete with Microsoft-backed OpenAI’s ChatGPT. However, investors have cautioned that a market shakeout is likely due to increasing cost and profit pressures.
Key takeaways:
- Chinese AI startup Baichuan has raised $300 million from investors including Alibaba and Tencent.
- The funding round followed an early $50 million angel round.
- Other investors include smartphone maker Xiaomi and various investment firms.
- China's interest in generative AI has led to a surge in product and fundraising announcements, with the industry aiming to find a domestic competitor to Microsoft-backed OpenAI’s ChatGPT.