{"slug": "giant-models-grab-headlines-but-some-chinese-start-ups-bet-on-smaller-phone-ai", "title": "Giant models grab headlines, but some Chinese start-ups bet on smaller phone-ready AI", "summary": "Chinese AI startups are shifting focus to lightweight models that run on smartphones and laptops, challenging the dominance of giant cloud-based systems. Beijing-based ModelBest raised over 5 billion yuan ($738 million) this year, reaching a 20 billion yuan valuation, as investors bet on on-device AI for faster processing, privacy, and lower costs.", "body_md": "# Giant models grab headlines, but some Chinese start-ups bet on smaller phone-ready AI\n\nA growing number of tech firms are pivoting to lightweight models designed to run entirely on smartphones and laptops\n\n[global artificial intelligence race](https://www.scmp.com/tech/article/3357330/chinas-ai-outpaces-global-rivals-trails-trust-public-first?module=inline&pgtype=article)pushes the limits of scale with massive, trillion-parameter models, a parallel contest is heating up over smaller systems.\n\n[lightweight models](https://www.scmp.com/tech/policy/article/3359791/china-weighs-open-weight-ais-security-risks-against-national-tech-innovation-strategy-researchers?module=inline&pgtype=article)designed to run entirely on smartphones or laptops.\n\nProponents said this localised approach would be a game-changer, promising faster processing, enhanced data privacy and lower operating costs.\n\nInvestors are buying in. Beijing-based ModelBest, a prominent player in on-device AI, raised more than 5 billion yuan (US$738 million) this year, according to a WeChat post by investor Shanghai Mejoy Capital.\n\nModelBest’s latest C+ Series funding round, completed earlier this week, propelled the firm’s valuation to 20 billion yuan, according to the post.\n\nThe start-up did not disclose the size of its latest funding round and did not immediately respond to a request for comment on Thursday.\n\nThe funding milestone comes amid a flurry of activity in China’s so-called local AI or edge AI sector.", "url": "https://wpnews.pro/news/giant-models-grab-headlines-but-some-chinese-start-ups-bet-on-smaller-phone-ai", "canonical_source": "https://www.scmp.com/tech/tech-trends/article/3360820/giant-models-grab-headlines-some-chinese-start-ups-bet-smaller-phone-ready-ai?utm_source=rss_feed", "published_at": "2026-07-16 13:30:06+00:00", "updated_at": "2026-07-16 13:48:49.108728+00:00", "lang": "en", "topics": ["artificial-intelligence", "ai-startups", "ai-products", "ai-infrastructure"], "entities": ["ModelBest", "Shanghai Mejoy Capital"], "alternates": {"html": "https://wpnews.pro/news/giant-models-grab-headlines-but-some-chinese-start-ups-bet-on-smaller-phone-ai", "markdown": "https://wpnews.pro/news/giant-models-grab-headlines-but-some-chinese-start-ups-bet-on-smaller-phone-ai.md", "text": "https://wpnews.pro/news/giant-models-grab-headlines-but-some-chinese-start-ups-bet-on-smaller-phone-ai.txt", "jsonld": "https://wpnews.pro/news/giant-models-grab-headlines-but-some-chinese-start-ups-bet-on-smaller-phone-ai.jsonld"}}