# Giant models grab headlines, but some Chinese start-ups bet on smaller phone-ready AI > Source: > Published: 2026-07-16 13:30:06+00:00 # Giant models grab headlines, but some Chinese start-ups bet on smaller phone-ready AI A growing number of tech firms are pivoting to lightweight models designed to run entirely on smartphones and laptops [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. [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. Proponents said this localised approach would be a game-changer, promising faster processing, enhanced data privacy and lower operating costs. Investors 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. ModelBest’s latest C+ Series funding round, completed earlier this week, propelled the firm’s valuation to 20 billion yuan, according to the post. The start-up did not disclose the size of its latest funding round and did not immediately respond to a request for comment on Thursday. The funding milestone comes amid a flurry of activity in China’s so-called local AI or edge AI sector.