TECH

StepFun Raises $717 Million, Outpacing Newly Listed AI Rivals

Published: Jan. 26, 2026 6:08 p.m. GMT+8

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AI startup StepFun announced Jan. 26 that it completed a Series B+ funding round raising more than 5 billion yuan. Photo: IC Photo

Chinese artificial intelligence (AI) startup StepFun has raised more than 5 billion yuan ($717 million) in a new funding round, eclipsing the IPO proceeds of recently listed rivals as it pushes into hardware integration.

The Series B+ financing round, announced Monday, exceeds the proceeds raised by competitors Zhipu AI and MiniMax in their Hong Kong listings earlier this month, which brought in HK$4.173 billion ($535 million) and HK$4.596 billion, respectively.

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StepFun raised over 5 billion yuan ($717 million) in Series B+ funding, surpassing recent IPOs by rivals Zhipu AI and MiniMax.
StepFun focuses on multimodal models and hardware integration, partnering with major phone brands and naming Yin Qi as its new chairman.
Despite high valuations, leading Chinese AI startups face significant losses due to costly LLM development; Zhipu AI and MiniMax lost billions between 2022-2025.

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Who’s Who

StepFun: StepFun is a Chinese AI startup that recently raised over $717 million in a Series B+ funding round. It focuses on multimodal models and hardware integration, partnering with mobile phone manufacturers like Honor, Oppo, and ZTE. The company envisions personal AI hardware assistants and sees smart cars as a crucial application for its technology.

Zhipu AI: Zhipu AI, officially Knowledge Atlas Technology Joint Stock Co. Ltd., is a prominent Chinese AI startup that went public on January 8. It became the sector's first publicly traded company and has since seen its stock rise significantly. Focused on enterprise clients, Zhipu AI, along with other top Chinese AI startups, is considered a potential rival to OpenAI. However, it, like its peers, is facing substantial financial losses due to the high costs associated with developing large language models.

MiniMax: MiniMax is a Chinese artificial intelligence startup. It recently listed on the Hong Kong stock exchange, raising HK$4.596 billion. Following its listing, its shares surged by 127%, reaching a valuation of HK$117.9 billion. MiniMax focuses on consumer applications within the AI sector. The company reported significant net losses, with $808 million between 2022 and 2024, and an additional $512 million in the first three quarters of 2025.

Shanghai State-owned Capital Investment Co Ltd.: Shanghai State-owned Capital Investment Co Ltd. is a state-backed investor in StepFun, a Chinese AI startup. It participated in StepFun's Series B+ funding round, which raised over 5 billion yuan ($717 million). This investment highlights the trend of state-backed entities supporting AI development in China.

China Life Insurance Co. Ltd.: China Life Insurance Co. Ltd. (601628.SH) is an investor in the Chinese artificial intelligence (AI) startup StepFun. It participated in StepFun's Series B+ funding round, which raised over 5 billion yuan ($717 million).

Tencent Holdings Ltd.: Tencent Holdings Ltd. is an existing shareholder in the Chinese AI startup StepFun. In a recent Series B+ financing round, Tencent increased its stake in StepFun. This significant investment highlights Tencent's involvement in supporting leading large language model (LLM) developers in China.

Chongqing Afari Technology Co. Ltd.: Yin Qi, chairman of Chongqing Afari Technology Co. Ltd. (601777.SH) and co-founder of Megvii Technology Ltd., has been named the new chairman of StepFun. He will oversee StepFun's overall strategy, focusing on commercializing AI models in end-user terminals.

Megvii Technology Ltd.: Yin Qi, co-founder of Megvii Technology Ltd., has been named the new chairman of Chinese AI startup StepFun. He will oversee StepFun's overall strategy, particularly focusing on commercializing AI models in end-user terminals.

Knowledge Atlas Technology Joint Stock Co. Ltd.: Zhipu AI, officially Knowledge Atlas Technology Joint Stock Co. Ltd., is a Chinese AI startup. It made its public debut as the first company in its sector to be traded, with its stock rising 65% since listing. Zhipu AI has a market capitalization of HK$84.5 billion and targets enterprise clients. However, it incurred significant losses, reporting a 2.358 billion yuan deficit in the first half of 2025.

Moonshot AI: Moonshot AI, a leading Chinese AI startup, completed a $500 million Series C funding round in December 2025, accumulating over 10 billion yuan in cash. Unlike some competitors, it's not rushing to go public, preferring to secure funds through the private market. Moonshot AI is considered one of China's top AI assets.

Honor: Honor is a mobile phone manufacturer that partners with Chinese AI startup StepFun. StepFun provides AI technology for Honor's devices, among others. By the end of 2025, StepFun had released 29 models, and its models cover millions of terminal units, with cloud-based usage significantly increasing.

Oppo: Oppo is one of the mobile phone manufacturers that StepFun has partnered with. StepFun provides technology for Oppo devices, along with Honor and ZTE, covering millions of terminal units with its models.

ZTE: ZTE is a Chinese telecommunications company that partners with the AI startup StepFun. StepFun provides its AI technology for integration into ZTE devices, alongside other mobile phone manufacturers like Honor and Oppo.

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