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Chinese AI apps eye overseas markets for growth amid tough competition, regulation at home

According to research by Unique Capital, among the 1,500 active AI companies worldwide, 103 hail from China.

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ByteDance has developed AI apps for overseas users. Photo: Shutterstock Images
Wency Chenin Shanghai

Chinese artificial intelligence (AI) app developers are increasingly eyeing international users, as the domestic market environment turns too competitive, according to industry insiders.

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While China’s Big Tech firms and its start-ups have rushed to launch hundreds of large language models (LLMs) and related apps, it has been a challenge to convince Chinese corporate users and consumers to pay for these services, prompting some firms to look overseas for growth.

According to recent research by Unique Capital, among the 1,500 active AI companies worldwide, 103 hail from China but have started expanding into overseas markets.

Chinese tech firms have rushed to launch LLMs and related apps, but it has been a challenge to convince people to pay for them. Photo: Shutterstock Images
Chinese tech firms have rushed to launch LLMs and related apps, but it has been a challenge to convince people to pay for them. Photo: Shutterstock Images

Alibaba Group Holding, for example, launched SeaLLMs, a model tailored for Southeast Asian markets last year, aligning with the firm’s e-commerce and cloud computing businesses in the region. Alibaba owns the South China Morning Post.

ByteDance, the owner of TikTok, has rolled out consumer-facing apps, including the “AI homework helper” Gauth, the interactive character app AnyDoor, and the AI bot platform Coze for global markets. Minimax, one of China’s leading AI start-ups, also launched Talkie AI for international users.

Industry insiders said that overseas markets offer greater growth potential amid fierce competition at home.

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“Foreign users are more willing to pay for software and there’s a larger base of professionals who can provide valuable feedback,” said Ryan Zhang Haoran, co-founder of Motiff, creator of an AI-powered user interface design tool launched in June. Zhang noted that from day one, Motiff has pursued business opportunities at home and abroad.

“Utility-focused tools fit well in global markets where customisation demands are lower,” Zhang added. Motiff’s platform, supporting team collaboration and AI-assisted design and generation, has quickly secured its first batch of users across the US, Japan, Southeast Asia, and Latin America, with pricing set at about 20 per cent of the current market leader Figma.

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