This report is from CNBC’s The China Connection newsletter this week, delivering insights and analysis on the powerhouse of the world’s second-largest economy. You can subscribe here.
big story
Nvidia’s latest warning is that its Chinese rival is trying to disrupt the world. It’s not just chips.
The chatter among startups developing AI tools in China is often less about the domestic market and more about global opportunities.
In fact, Tripo AI, a company that generates 3D models from images, said about 90% of its users are outside China.
Founder and CEO Simon Song told me last week that the startup is already in talks with major Western gaming, animation and manufacturing companies about strategic investments.
Since Tripo launched its 3D model generation platform in June 2025, its monthly revenue quickly grew to more than $1 million, Song said. He said companies in Europe and the United States are more willing to try new AI tools, even if they don’t yet see clear revenue increases, compared to corporate users in China who are more focused on short-term profits.
This startup is just one example of how quickly products can be brought to market despite global competition.
Last week, Tripo released the latest H3.1 model for 3D model generation. The startup is working on building a platform that allows individuals to use AI to design their own physical products that can eventually be sold. Song said Tripo plans to release new tools to reduce generation times at the Game Developers Conference in San Francisco from March 9-13.
Next week, several Chinese AI companies will speak virtually at Nvidia’s GTC conference in San Jose, California. Two notable in-person sessions listed feature Moonshot founders and ByteDance Seed engineers.
These are just a few examples of how Chinese startups and tech giants are rapidly expanding around the world, a year after DeepSeek’s AI inference model shocked global investors. And companies aren’t waiting around for the next DeepSeek model.
People visit the World Artificial Intelligence Conference (WAIC) held at the Shanghai World Expo Convention Center on July 28, 2025 in Shanghai.
Hector Retamal | AFP | Getty Images
david vs goliath
Another Chinese startup, iSales, said it has helped more than 300 small Chinese manufacturers find buyers outside China and has generated more than $1 million in revenue since June.
Despite trade tensions, they believe the market is underserved.
Pan Yiming, founder and CEO of iSales, said at an event in Beijing that water pipe connectors made in China, for example, are 90% as high in quality as comparable Japanese or German products, but available at one-third the price. He charges 40,000 yuan ($5,800) per customer and expects well over 1,000 companies to sign up in China this year.
The company plans to launch an AI social media marketing tool for companies outside China later this spring. Pan, a Tsinghua University graduate, also hinted at lofty ambitions to take on US software giant Salesforce.
For now, iSales is a 50-person team based primarily in Shanghai’s Pudong district, and Pan said the startup has been provided free office space courtesy of the local government, along with subsidies to use Chinese AI models.
brave new world
The capital strategy highlights how these companies are building with global markets in mind from day one. Both iSales and the much larger Tripo AI said they were prioritizing funding from US dollar-based investors with a view to a future listing in Hong Kong. In fact, iSales announced Tuesday that it has received a $1 million angel investment from Singapore-based Impa Ventures.
Tripo’s Song already has experience building businesses that can go public. He co-founded the AI modeling company MiniMax, which went public on the Hong Kong Stock Exchange in January. Shares rose more than 9% on Tuesday after the company’s first upbeat earnings report.
When it comes to the larger question of what AI means for the world, Song also has his own vision.
In his previous role as head of animation at Chinese AI company SenseTime, he noticed patterns in teams of 30+ people. Even the most artistic graduate hits a creative block after five years of completing repetitive animation tasks to support one director’s ideas.
“Is that human? Is it amazing?” he said. With AI and Tripo’s vision for a platform that will transform e-commerce, “Everyone can be proud.”
need to know
Iranian influence. Following the death of Supreme Leader Ayatollah Khamenei in a joint attack between the United States and Israel, there is growing uncertainty whether President Trump will visit China in late March as planned.
Bright consumer. Data from the Lunar New Year holiday suggests an increase in spending, enough to limit the possibility of the Chinese government launching a large-scale economic stimulus package.
Chinese technology in Spain. Smartphone company Honor showed off its robot phone at the Mobile World Congress in Barcelona, and Xiaomi announced its latest lineup of flagship smartphones at similar prices to last year, despite the rising cost of memory chips.
very soon
March 5: China’s National People’s Congress begins. Announcement of GDP and other economic targets
March 9: February China CPI, PPI
March 10: China trade statistics for the first two months of this year
