BUSINESS

Chinese AI Startup StepFun Launches Smartphone to Challenge Tech Giants

Published: Oct. 14, 2026 1:57 p.m. GMT+8

00:00

00:00/00:00

Listen to this article 1x

Stepfun displays its debut STEPX Neo smartphone at the World AI Conference in Shanghai on July 20, 2026. Photo: VCG

Chinese AI model developer StepFun officially launched its first AI agent smartphone on Tuesday, with a price tag of 3,999 yuan ($597).

The release of the early-access edition of the STEPX Neo marks an attempt by a software-focused startup to bypass traditional tech gatekeepers by building its own operating system, highlighting an emerging industry battle to define how consumers interact with AI on their personal devices.

You've accessed an article available only to subscribers

Subscribe today for just $.99.

VIEW OPTIONS

Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.

Subscribe to both Caixin Global and Bloomberg - for the price of one.

Share this article

Open WeChat and scan the QR code

DIGEST HUB

Digest Hub

Back

Explore the story in 30 seconds

StepFun launched STEPX Neo AI phone at 3,999 yuan ($597) with dual screens and Step AOS 1.0, featuring Amoo assistant.
Using Model Context Protocol for third-party app access requires firms to abandon silos; analysts doubt it can disrupt established smartphone market.
StepFun raised $2.5B pre-IPO and dismantled offshore structure for Hong Kong listing; also released Step-5-Preview model scoring 44.

AI generated, for reference only

Who’s Who

StepFun: StepFun (阶跃星辰) launched its first AI agent smartphone, STEPX Neo, priced at 3,999 yuan, running on Step AOS 1.0 with the Amoo assistant. It partnered with Alipay, Meituan, and Tencent. It also released the Step-5-Preview model and raised $2.5B, preparing for a Hong Kong listing.

Alipay: According to the article, Chinese AI developer StepFun has secured ecosystem partnerships with several platforms, including Alipay. Alipay is one of the partners collaborating with StepFun's STEPX Neo AI agent smartphone and its operating system.

Meituan: Meituan is one of the ecosystem partners for StepFun's new AI agent smartphone (STEPX Neo). This partnership allows StepFun to access Meituan's services via a Model Context Protocol, though it requires internet companies like Meituan to open their closed application silos.

Tencent Holding: According to the article, Tencent Holding is a partner of Chinese AI developer StepFun. StepFun has secured ecosystem partnerships with platforms including Tencent Holding's WorkBuddy for its STEPX Neo AI smartphone.

Nubia: According to the article, Nubia's NaviX Ultra is an AI phone that debuted alongside StepFun's STEPX Neo and Honor's Robot Phone at the World AI Conference 2026 in Shanghai in July.

Honor: Based on the article, Honor is a smartphone manufacturer. Its Robot Phone debuted at the World AI Conference 2026 in Shanghai alongside STEPX Neo and Nubia's NaviX Ultra. Additionally, StepFun previously collaborated with Honor to integrate mobile AI assistants into devices. Honor represents a traditional manufacturer navigating the emerging AI phone market.

Oppo Co. Ltd.: Oppo Co. Ltd. is a traditional smartphone manufacturer mentioned in the article. It is launching AI-adapted operating systems alongside Vivo in the crowded AI phone market. Oppo previously collaborated with StepFun to integrate mobile AI assistants before StepFun launched its own device.

Vivo Mobile Communications Co. Ltd.: Based on the article, Vivo Mobile Communications Co. Ltd. is a traditional smartphone manufacturer that is launching AI-adapted operating systems. It is part of the established competitive landscape in the AI phone market, alongside Oppo and other players.

Qualcomm Inc.: Qualcomm Inc. appears in the article through its China Chairman, Meng Pu. He stated that it is too early to determine whether software crossovers or traditional hardware upgrades will succeed in the AI phone market, cautioning that this market will require sustained technical investment.

Xiaomi: According to the article, Xiaomi's AI model MiMo-V2.6-Pro outperformed StepFun's Step-5-Preview on the Artificial Analysis platform. While StepFun's model scored 44 points (tying with Kimi K3), Xiaomi's MiMo-V2.6-Pro ranked higher, alongside Alibaba's Qwen3.8-Max and Z.AI's GLM-5.3, in this third-party evaluation of AI capabilities.

Alibaba: Alibaba is mentioned in the article for its AI model, Qwen3.8-Max, which scored higher than StepFun's Step-5-Preview on the Artificial Analysis evaluation platform. It is among several leading models, alongside Xiaomi's MiMo-V2.6-Pro and Z.AI's GLM-5.3.

Z.AI: Based on the article, Z.AI (智谱AI) is briefly mentioned: its GLM-5.3 model scored higher than StepFun's Step-5-Preview (44 points on Artificial Analysis), which trailed Z.AI's model, Xiaomi's, and Alibaba's. No further details about Z.AI are provided.

Geely: Based on the article, Geely is an automaker that previously collaborated with Chinese AI developer StepFun. This partnership involved integrating mobile AI assistants and smart cabin systems. This collaboration occurred before StepFun launched its own AI-powered smartphone, the STEPX Neo.

Chongqing Afari Technology Co. Ltd.: Chongqing Afari Technology Co. Ltd. is an assisted-driving systems developer that collaborated with Chinese AI firm StepFun, along with Oppo, Honor, and automaker Geely, to integrate mobile AI assistants and smart cabin systems.

AI generated, for reference only

What Happened When

May 2026：: StepFun raised $2.5 billion in a pre-IPO funding round.

July 2026：: STEPX Neo debuted at the World AI Conference 20226 in Shanghai, alongside Nubia's NaviX Ultra and Honor's Robot Phone.

2026-09-20：: StepFun launched its new flagship base model, Step-5-Preview.

2026-10-13：: StepFun officially launched its first AI agent smartphone, the STEPX Neo, with early-access edition released and priced at 3,999 yuan.

AI generated, for reference only