Chinese AI companies set their sights on overseas markets in search of monetization

Geopolitical tensions and technological gaps are forcing Chinese developers to seek new strategies to enter the global market. Alibaba, ByteDance and other large Chinese companies have begun launching AI-powered applications not only for the domestic market, but also for a global audience, adapting their products to different markets.

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According to the South China Morning Post, citing research from Unique Capital, among 1,500 active AI companies worldwide, 103 Chinese firms have already begun expanding into overseas markets. The trend is driven by the difficulty in convincing Chinese users to pay for AI services, which has prompted some companies to look overseas for growth opportunities.

For example, Alibaba, in line with its e-commerce and cloud computing strategy in the region, launched SeaLLMs, an AI model tailored for Southeast Asian markets. TikTok owner ByteDance has introduced a range of consumer apps to the global market, including AI home assistant Gauth, interactive character app AnyDoor and AI bot platform Coze. Minimax, one of China’s leading AI startups, also launched the Talkie AI app for international users.

According to industry experts, overseas markets offer greater growth potential amid stiff competition at home. Ryan Zhang Haoran, co-founder of Motiff, an AI-powered UI design platform company, notes, “Overseas users are more willing to pay for the software, and there are more professionals there to provide valuable feedback.” Zhang emphasizes that the company has focused on business opportunities both domestically and internationally from the very beginning. At the same time, Motiff managed to quickly attract its first clients from the USA, Japan, Southeast Asia and Latin America.

Another Beijing-based company, Kunlun Tech, a veteran among Chinese tech companies, is also targeting overseas users. CEO Fang Han notes that the competitive environment overseas is becoming more intense as Chinese companies expand internationally. “AI-generated content fundamentally lowers barriers and costs for creators, leading to a revolution in the content production industry,” says Fan. Kunlun Tech recently launched a number of AI-powered applications, including music streaming service Melodio, commercial AI music creation platform Mureka, and short film generation platform SkyReels.

The entry of Chinese AI developers into the international market is also due to both high competition in the domestic market and the desire to expand and monetize their products. However, Chinese AI developers have to take into account not only market realities, but also the political situation, especially in light of deteriorating relations between Washington and Beijing. Some companies even try to hide their Chinese origin.

Generative AI startup HeyGen, for example, moved its headquarters to Los Angeles and urged its Chinese investors to sell shares to American partners to minimize ties to mainland China amid tightening controls. “Compliance is critical. Entering a new market means complying with its rules,” said Motiff’s Zhang. He added that while the products are uniform globally, the company’s infrastructure is tailored for different markets using different open source models and cloud services.