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      China's AI Model Revenue Significantly Lags Behind US Competitors

      The Rhodium Group, an American research institution, has reported that the total annual recurring revenue (ARR) of China's artificial intelligence models is approximately 10% of that generated by leading US companies OpenAI and Anthropic. The report highlights that while Chinese companies such as DeepSeek, MiniMax, Moonshot, and Z.ai have made strides in the AI sector, their revenues remain substantially lower than their American counterparts.

      DeepSeek's ARR stands at $500 million, MiniMax's at $800 million, Moonshot's at $1 billion, and Z.ai's latest ARR has reached $1.8 billion. Even when including revenues from major players like ByteDance and Alibaba, which contribute $4 billion and $2.4 billion respectively, the total still falls short of OpenAI's $40 billion and Anthropic's $65 billion.

      The report also indicates that Moonshot and DeepSeek are currently overvalued based on their revenue, with valuation ratios of 50 times and 163 times, compared to OpenAI's 34 times and Anthropic's 21 times. Z.ai has raised its full-year ARR expectation to $3 billion. Rhodium partner Logan Wright noted that the financing gap poses challenges for China's leading AI laboratories, making sustainable expansion difficult and increasing their reliance on favorable equity market conditions. Notably, over 60% of China's AI chip and server equity investments are sourced from state-related entities.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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