Alibaba-Backed Baichuan Secures $691 Million

Beijing-based AI startup Baichuan Intelligent Technology has raised approximately 5 billion yuan (about $691 million) in its latest funding round.

• Big Players in the Game: Major Chinese tech giants Alibaba, Tencent, and Xiaomi led the investment, joined by state-backed entities like the Beijing AI Industry Investment Fund, Shanghai AI Industry Investment Fund, and Shenzhen Capital Group.

• Valuation: Following this investment, Baichuan’s valuation has increased to over 20 billion yuan ($2.7 billion), making it China’s second most valuable AI startup, after Moonshot AI.

• Company Background: Founded in April 2023 by Wang Xiaochuan, former CEO of Sogou, Baichuan focuses on large language models and generative AI.

• Investment Impact: The recent funding will support Baichuan’s continued development of large language models, including the Tongyi Qianwen series and an open-source model named Qwen.

• Investment Context: This funding is part of a larger trend of heavy investment in China’s AI sector, including a new $40 billion state fund for semiconductors amid U.S. export restrictions.

Baichuan’s latest round highlights its growing influence and competitive stance in the AI market.