Study finds Chinese AI firms’ revenue is just 10% of OpenAI and Anthropic’s

A report by the Rhodium Group, published on Thursday (17), estimates that China’s leading artificial intelligence companies generate around 10% of the annualized recurring revenue (ARR) reported by OpenAI and Anthropic. According to the institute, OpenAI is valued at $40 billion and Anthropic at $65 billion.

DeepSeek, the Chinese company with the lowest ARR among those listed, reports $500 million. MiniMax follows with $800 million, Moonshot with $1 billion, and Z.ai informed investors on Wednesday (16) of a value of $1.8 billion, according to CNBC. ByteDance contributes $4 billion and Alibaba $2.4 billion. Even when these values are combined, the total Chinese figure remains well below the numbers of the two American leaders.

Valuations deemed excessive relative to revenue

Rhodium notes that the market values of Chinese startups appear disproportionate to their current revenues. Moonshot and DeepSeek have valuations equivalent to 50 and 163 times their revenues, respectively, while OpenAI and Anthropic have multiples of 34 and 21 times.

Anthropic plans to go public in the United States next month, and OpenAI has postponed its IPO until 2025. Moonshot has reportedly already filed for a public offering in Hong Kong, and DeepSeek is also preparing for a stock market debut. When asked, Moonshot declined to comment on market rumors.

Open models generate less revenue but also cost less

Chinese AI labs are trying to capture more revenue from third parties that use their open-source models, since anyone with suitable hardware can download and run the technology without paying the original developer. In contrast, American models, which are mostly closed, charge more per task, according to Artificial Analysis.

“The funding mismatch makes it much harder for top Chinese labs to grow sustainably,” said Logan Wright, a partner at Rhodium Group, in a statement to CNBC. “They will rely heavily on a favorable stock market environment, which historically has not been an easy bet in China.”

Real-world use of platforms contrasts with revenue

Despite lower revenue, Chinese models dominate usage on the OpenRouter platform, accounting for 46.4% of all tokens processed, compared to 35.7% for American models. Anthropic, although it holds only 14.8% of the volume, captures more than half of the spending on the platform, reflecting a premium pricing strategy.

Frequently Asked Questions

How much do Chinese AI companies earn compared to OpenAI and Anthropic? Together, the leading Chinese companies generate around 10% of the ARR reported by OpenAI and Anthropic, according to the Rhodium Group. OpenAI is estimated at $40 billion and Anthropic at $65 billion.

What is the revenue of the leading Chinese AI companies? DeepSeek has an ARR of $500 million, MiniMax of $800 million, Moonshot of $1 billion, ByteDance of $4 billion, and Alibaba of $2.4 billion. Z.ai reported $1.8 billion to investors.

What does annualized recurring revenue (ARR) mean? ARR is calculated by multiplying a company’s most recent monthly revenue by 12, serving as an indicator of current growth.

Are Chinese AI startups overvalued? Rhodium believes that the valuations of Moonshot and DeepSeek appear excessive relative to their revenues. Moonshot is worth 50 times its revenue and DeepSeek 163 times, while OpenAI and Anthropic are worth 34 and 21 times, respectively.

Why do Chinese models generate less revenue? Chinese models are often open, allowing third parties to run them without passing on revenue. In addition, they charge less per task than closed American tools.

Are Chinese models more widely used than American ones? On OpenRouter, Chinese models process 46.4% of tokens, compared to 35.7% for American models. Anthropic, with 14.8% of the volume, captures more than half of the spending, thanks to higher prices.