Top Chinese AI models make 10% of OpenAI, Anthropic revenue despite high valuations: report
Chinese artificial intelligence models from seven major developers combined generate only about 10 per cent of the revenue reported for OpenAI and Anthropic, even as investor enthusiasm remains intense, according to US-based research firm Rhodium Group. The Chinese AI models earned an estimated US$10.7 billion in annual recurring revenue (ARR) from March to August, a fraction of the more than…
A recent report from the US-based Rhodium Group reveals that Chinese AI models together account for only around 10 percent of the revenue generated by OpenAI and Anthropic, despite intense investor interest. In total, the Chinese AI models generated an estimated $10.7 billion in annual recurring revenue (ARR) between March and August, far less than the combined $100 billion ARR for OpenAI and Anthropic.
The report covers seven major Chinese AI developers, including DeepSeek, Moonshot AI, Z.ai, MiniMax, Alibaba Group Holding, ByteDance, and Kuaishou Technology. ByteDance led with $4 billion in ARR as of July, followed by Alibaba at $2.4 billion in August. DeepSeek and Kling had the lowest ARR among the major Chinese AI companies, at $500 million each as of June and March, respectively.
Despite the significant revenue gap, Chinese AI companies continue to attract significant investment. Investors have valued these companies substantially lower than OpenAI and Anthropic, with Moonshot and DeepSeek showing valuation-to-ARR multiples of 50 and 163 times, respectively, compared to 34 and 21 times for OpenAI and Anthropic.
The report highlights the challenge for China's AI industry in turning AI models into sustainable businesses amid heavy spending on computing power to stay competitive.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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