Chinese startups pivot to smaller AI models for smartphones

A growing number of Chinese tech firms are shifting focus to lightweight AI models designed to run entirely on smartphones and laptops, rather than massive cloud-based systems. Proponents argue this localized approach offers faster processing, enhanced data privacy, and lower operating costs. Beijing-based ModelBest, a key player in on-device AI, raised over 5 billion yuan (US$738 million) this year, according to investor Shanghai Mejoy Capital. Its latest C+ Series funding round, completed this week, pushed the company's valuation to 20 billion yuan. The startup did not disclose the size of the round and did not respond to a request for comment. The funding milestone reflects a surge of activity in China's local AI or edge AI sector.