The year of 2025 started with some shaking news for the Artificial Intelligence ecosystem. In January, the Chinese company DeepSeek announced the release of DeepSeek-R1, a Large Language Model (LLM) similar to ChatGPT, Grok or Gemini. Only one week after its launch, DeepSeek surpassed ChatGPT in number of downloads in the AppStore, causing significant damage for US tech stocks, including Nvidia’s.
But there was more. The Chinese LLM was found to achieve high performance using fewer resources, having a production cost way lower and requiring way less training than that of its competitors. Such happened thanks to the adoption of innovative methods, mainly Chain of Thought Reasoning and Distillation (in this case, involving the usage of models like Llama and Qwen). DeepSeek’s cost-efficiency truly left the world wondering.
Throughout the year, Chinese companies kept presenting new and rapidly growing AI projects. In July, China was on the global top of AI development with 1509 large models. From the 35.000 AI enterprises existing globally, 5100 were based in the country, including over 70 unicorns (26 percent of the world’s total).
Besides DeepSeek, another vanguardist Chinese LLM model is SpikingBrain. Developed by Chinese researchers, SpikingBrain’s proposal is to bridge the gap between traditional large language models (LLMs) and brain-inspired computing principles. It mimics how neurons in the human brain “spike” instead of continuously activating, which saves power and speeds up response time. In fact, SpikingBrain has been demonstrating much more efficiency in executing long tasks or sequences. The model presents potential to work as a launchpad for a whole new generation of LLMs.
Moreover, big Chinese companies are also turning to generative AI. ByteDance, the owner of platforms like TikTok and CapCut, has seen its chatbot Doubao leading China’s AI app market in mid-2025. In December, the company released Doubao Mobile Assistant, an innovative AI-agent concept in which the assistant is embedded in the phone’s layers, instead of running on an independent app. Alibaba Group, the owner of the popular B2B e-commerce platform Alibaba, is also investing on its AI app Qwen. By the end of the year, Qwen was integrated with the mapping and navigation platform Amap, a kick-off of its ecosystem integration strategy. Tech-giant Xiaomi, on its turn, has recently launched MiMo-V2-Flash, intended to challenge the world’s biggest LLM’s.
However, Chinese companies harnessing AI have been presenting multiple projects and products beyond chatbots. Significant AI advancements are reaching robotics, encompassing areas ranging from humanoid robots to autonomous driving. This blend of the two areas – called “Embodied AI” – can power a shift in modern lifestyle, boost productivity, address ageing population through eldercare services and even enhance military capabilities.
China currently has more than 150 robot enterprises and around 280.000 new units being produced annually. These companies are aiming to change the way humans live, work and play through robots. Many humanoid robots are currently being maneuvered by shop and restaurant operators to execute repetitive tasks such as folding clothes or opening doors, with AI being used for their training and data collection. Furthermore, there are plans to open a robot-friendly demonstration zone in the city of Shenzen (Guangdong Province). Since smart robots are becoming increasingly common in Chinese urban facilities, this initiative intends to create a space that easily enables interactions between citizens and robots. Another pioneer service in robotics coming from China is the world’s first humanoid robot appstore. This platform, conceived by Unitree Robotics, allows people to access, control remotely, and guide the movements of humanoid robots just by using their phones.
On autonomous driving, aforementioned Xiaomi, for instance, is launching a Hands-Free Autonomous Driving Experience with its SU7 and YU7 models. Another company, Momenta, has released a robotaxi service in AbuDhabi and announced a collaboration with ride-hailing superapp Grab and plans to begin robotaxi testing along with Uber in 2026, in Munich. Silicon-Valley based Pony.ai – which operates the only fully driverless robotaxi services across some of China’s biggest cities, including Beijing and Shanghai –, on its hand, is set to bring robotaxis to every corner of Europe, following a partnership with Bolt and is aiming at a fleet of 1000 vehicles in the Middle East by 2028. Baidu did not stay behind, partnering up with Lyft with the same goal in mind. Finally, WeRide already launched, along with Uber, robotaxi services in Dubai.
China is starting 2026 with an AI advantage and the USA and Europe should not lose pace. The blueprint is already there. The USA is home to tech giants that can power big shifts in AI such as Meta, Google, Nvidia and OpenAI. Other firms like Anthropic and Perplexity AI also have significant potential. In the autonomous driving domain, Waymo is gaining traction. From Europe, companies like Mistral AI and Aleph Alpha are showing that the old continent also has a word to say in the AI ecosystem.
Chinese companies are taking ambitious steps and the West should remain competitive. AI is changing the world and innovation should be seen as an ally and not an enemy that, if guided wisely, can strengthen economies, reinforce democratic values, and ensure that technological leadership remains aligned with openness, responsibility, and human progress.
* Beatriz Santos is the Chief Communications Officer (CCO) at We Are Innovation. She is based in Lisbon, Portugal. Beatriz started publishing articles through her University newspaper and eventually moved to national and international reach outlets, including the well known Portuguese outlets NOVO and Observador. Her professional career includes international communications experience with the ATREVIA agency and the European Parliament. She also has two published books and is an essential part of the Students For Liberty organization in Portugal. With a focus on positive change and global cooperation, Beatriz actively seeks partnerships across the globe to promote innovative initiatives.
Source: We Are Innovation
