Chinese AI start-ups are targeting the US market to boost revenue growth, inspired by TikTok’s international success amid a challenging domestic landscape. Companies like MiniMax, ByteDance, and 01.ai are launching AI products overseas, particularly focusing on the lucrative US user base, reports the Financial Times.
MiniMax, backed by major investors, projects $70 million in sales this year, primarily from its avatar chatbot app, Talkie, which is popular among US teenagers. ByteDance has also introduced various AI apps and features, while 01.ai is beta testing an AI search tool.
Despite facing chip restrictions and scrutiny from Washington, experts believe Chinese firms have advantages in developing less resource-intensive products. However, they struggle to generate revenue domestically due to consumer hesitance towards subscriptions. The slowdown in fundraising has pressured these companies to expand internationally.
To mitigate potential issues with US regulations, these companies are establishing entities outside China to operate their apps. Data indicates that Talkie ranks among the top downloaded AI apps globally, showcasing the growing presence of Chinese-owned tech in the international market.