Chinese AI Startup Baichuan AI Raises $5 Billion in Funding

TMTPOST--Baichuan AI, a Chinese startup that develops generative AI and large language models that compete with products like OpenAI's ChatGPT, secured 50 billion yuan ($5 billion) in Series A round from major investors including Alibaba, Xiaomi and Tencent.

Other investors included industry players such as Asia Investment Capital, China International Capital Corporation, and state-backed investment funds including the Beijing Artificial Intelligence Industry Investment Fund, the Shanghai Artificial Intelligence Industry Investment Fund, and Shenzhen Capital Group.

The company plans to initiate Series B round with a valuation of 200 billion yuan ($20 billion).

With the completion of this funding round, Baichuan AI set a new record for the largest publicly disclosed financing in the AI large model sector in China to position itself as one of the leading companies in the industry. With the valuation of 200 billion yuan, Baichuan joins the ranks of other high-valuation AI companies such as MiniMax, Moonlight, and Zhipu AI.

Founded in April 2023 by Wang Xiaochuan, the former CEO of Sogou, Baichuan AI aims to build a Chinese equivalent of OpenAI. The company's mission is to create a top-tier large model foundation in China to facilitate widespread access to global knowledge and professional services.

The company’s core team comprises top AI talents from leading technology companies including Sogou, Google, Tencent, Baidu, Microsoft, and ByteDance. The team has grown to over 240 members, with more than 80% engaged in research and development.

In its short history, Baichuan AI has launched 12 large models, including Baichuan-7B/13B, Baichuan2-7B/13B, Baichuan3 series, Baichuan-53B, Baichuan2-53B, Baichuan2-192K, Baichuan2-Turbo, and Baichuan-NPC. These models span various dimensions such as open source, closed source, academic research, and domestic computing power. The Baichuan 3 model, released in January 2024, has surpassed GPT-4 in several authoritative medical evaluation tasks.

The company adheres to a strategy of "super models + super applications." It has introduced 12 large models and its first AI assistant, Baixiaoying, in May 2024, which supports multi-step and targeted searches.

Baichuan AI views medical applications as a key area for its super applications. As the leading large model company focusing on healthcare, Baichuan has made significant strides in AI medical technology and applications. Its proprietary general medical enhancement model has outperformed GPT-4 in multiple authoritative evaluations. In early July, Baichuan showcased its AI health advisor for the first time.

As of the end of 2023, Baichuan had already raised over $350 million through its initial and A1 round strategic financing.

Alibaba has invested in the "five tigers" of AI large models: Zhipu AI, Baichuan AI, Moonlight, Lingyi Wanwu, and Minimax. This investment reflects Alibaba's commitment to generative AI technology, signaling a rapid investment pace and its entry into the AI sector.