Chinese generative artificial intelligence (AI) startup Baichuan Intelligent Technology has raised 5 billion yuan ($691.4 million) in a Series A funding round, as the firm expands the use cases of its large language models (LLMs) amid intense domestic competition.
The Series A round roped in Chinese internet juggernauts including the likes of Alibaba Group, Tencent Holdings, and Xiaomi Corp, according to a post shared by the official WeChat account of Lighthouse Capital, the financial advisor of the deal on Thursday.
State-affiliated investors including Beijing Artificial Intelligence Industry Investment Fund; Shanghai Artificial Intelligence Investment Fund; and Shenzhen Capital Group, the venture investment vehicle of the Shenzhen government, have also participated in the round.
A company spokesperson has told Chinese financial news outlet Yicai that Baichuan is looking to kickstart its Series B fundraising at a valuation of 20 billion yuan ($2.8 billion).
Led by Wang Xiaochuan, former chief executive officer of Tencent-owned internet search engine Sogou Inc, Baichuan entered the unicorn club just six months after its inception in April 2023.
The latest round comes less than a year after the generative AI firm sealed its $300-million Series A1 round in October 2023, with backing from Alibaba Group, Tencent Holdings, Xiaomi Corp, as well as Legend Star, an early-stage investment arm of Chinese conglomerate Legend Holdings Corp.
So far, Baichuan has launched 12 large language models (LLMs), according to the WeChat announcement. The Beijing-registered firm debuted its consumer-facing AI assistant Bai Xiao Ying in May, which the firm claims enables users to search for more accurate, professional, and in-depth information.
The generative AI frenzy started by ChatGPT in November 2022 has since rippled through China where local names including MiniMax, Moonshot AI, and Zhipu AI raced to launch their own LLM models and snapped up mega funding from investors.
The intense competition, however, has led to concerns and questions among industry players. Baidu co-founder and CEO Robin Li Yanhong told state media in March that the “war of hundred models” in China is “a waste of resources”, urging the industry to build applications and use cases powered by the AI models.
