After tech giants, a new cohort of “AI tigers” finds footing in China

China’s artificial intelligence story no longer belongs solely to its largest technology companies, including Alibaba, ByteDance, Tencent, and Baidu.

What has changed in 2026 is not just the arrival of more large models or the companies building them, but the emergence of smaller players that public market investors can now price and evaluate.

This shift runs counter to a broader AI landscape defined by heavy capital expenditure on infrastructure. Reuters reported that ByteDance alone plans to spend more than RMB 160 billion (USD 23.4 billion) on AI-related procurement this year. Tencent said in March that its 2025 capital expenditure reached RMB 79.2 billion (USD 11.6 billion), driven largely by AI investment.

Alongside this model, a separate development has taken shape: the rise of startups often grouped as China’s “AI tigers.” These companies operate at a different scale. They spend less, attract less public attention, and historically offered fewer entry points for investors. That is beginning to change as several move toward public listings.

Six companies are commonly included in this group: 01.AI, Baichuan AI, MiniMax, Moonshot AI, StepFun, and Zhipu (now also known internationally as Z.ai).

What distinguishes them is their approach to monetization. Rather than competing directly in crowded segments, they tend to target narrower, more defined use cases. This is evident in the two companies that have already listed, MiniMax and Zhipu.

Zhipu began trading in Hong Kong on January 8 after selling 37.4 million shares at HKD 116.2 (USD 14.8), raising HKD 4.35 billion (USD 555.5 million). MiniMax followed a day later, pricing 29.2 million shares at HKD 165 (USD 21.1) and raising HKD 4.82 billion (USD 615.5 million). Their debuts coincided with a broader recovery in Hong Kong’s IPO market. Subsequent share price gains suggest sustained investor interest in AI startups, including those that are not yet profitable.

As of market close on April 20, MiniMax and Zhipu’s H shares were trading at HKD 911.5 and HKD 975, respectively, several times their listing prices.

These gains are supported, at least in part, by revenue growth. Zhipu has focused on both on-premise deployments and cloud-based model-as-a-service offerings. Its on-premise revenue more than doubled in 2025, while cloud revenue rose 292%, bringing total revenue to RMB 724.3 million (USD 106.1 million), up from RMB 312.4 million (USD 45.8 million) in 2024.

Meanwhile, MiniMax has leaned further into consumer-facing products while maintaining an open platform for developers. Its Hailuo AI and Talkie platforms focus on video generation and AI-driven character interaction. The company reported 2025 revenue of USD 79 million, up 158.9% year-on-year.

Another notable feature is the relationship between these startups and larger technology firms. Rather than direct competition, there is often overlap in ownership and commercial ties. MiniMax’s prospectus shows Alibaba holding a 12.52% stake after its IPO, while Tencent holds 2.37%. The filing also indicates that MiniMax purchased USD 54.9 million in services from Alibaba in the first nine months of 2025.

Zhipu presents a similar pattern, with Tencent and Meituan listed among its long-term backers. Alibaba also participated in its Series B round in 2023, according to Tracxn data, although it is unclear whether that stake has been reduced since the listing.

This broader alignment may help explain investor confidence. These companies remain early-stage, their technologies are costly to operate, and competition remains intense. However, their efforts to diversify beyond saturated AI segments, combined with measurable revenue growth, have at least offered evidence that multiple commercialization paths are emerging within China’s AI sector.

With reports that Moonshot AI and StepFun may pursue public listings, upcoming offerings could enter a market that has already shown a willingness to price that possibility.

Note: HKD, RMB figures are converted to USD at rates of HKD 7.83 = USD 1 and RMB 6.83 = USD 1 based on estimates as of April 20, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.