Report: Chinese AI firms' revenue trails OpenAI and Anthropic by 90%

A Rhodium Group report indicates that the combined annual recurring revenue (ARR) of seven major Chinese AI developers reached $10.7 billion, approximately 10% of the combined revenue of OpenAI and Anthropic. Despite rapid revenue growth for companies like ByteDance and Z.ai, Chinese firms face significant infrastructure spending, with investments projected to reach $139 billion in 2026. The report notes that while China is aggressively expanding its AI infrastructure, the free cash flow of major hyperscalers like Alibaba (阿里巴巴), Tencent (腾讯), and Baidu (百度) has turned negative during the first half of 2026.