China's increase in AI investment creates a unicorn every five days.

      China's AI industry has ample financial resources. In fact, American pressure seems to be increasing investment. This trend is exemplified by DeepSeek, which secured a $7.4 billion funding round—marking the largest initial raise for a Chinese startup—at a valuation exceeding $50 billion. For three years, it operated solely on founder Liang Wenfeng's personal wealth without seeking external funding. According to The Information, Liang was swayed by Anthropic's April preview of Mythos, a highly capable model that can identify and exploit software vulnerabilities.

      The Mythos influence

      Liang realized that achieving the capabilities of Mythos-class models would require significantly more data and computational resources, prompting him to seek funds. He secured financing through a partnership he manages, ensuring a five-year lockup period that keeps him in control. The irony is stark: a U.S. initiative to impose export restrictions and model bans to hinder China's progress has unintentionally motivated its leading lab to accumulate the largest funding pool in its history.

      This trend extends beyond just one lab. Currently, China is home to 381 unicorns—privately held startups valued at $1 billion or more—representing an increase of 38 in just a year, as reported by the 2026 Hurun Global Unicorn Index. On average, a new unicorn emerges every five days, doubling the rate of the previous year. ByteDance ranks among the top three startups globally. The competition for AI prominence has become increasingly polarized, with China holding one of the two key positions.

      Robots join the influx

      The latest investments are flowing into humanoid robots. This week, two Chinese manufacturers achieved unicorn status, boasting a combined valuation exceeding $2.9 billion, according to Bloomberg. AI² Robotics raised nearly 5 billion yuan ($736 million), while X Square Robot, supported by Alibaba, ByteDance, and Meituan, completed consecutive funding rounds. Each company has now surpassed a valuation of 20 billion yuan. The sector has accumulated at least 46 billion yuan this year, outperforming all of last year, with more than 140 companies pursuing what Nvidia's Jensen Huang refers to as "physical AI."

      Significance

      A common thread connects all these figures. Washington intended its restrictions to enhance America’s technological edge. However, the funding trends indicate the opposite is occurring. Chinese laboratories continue to close the gap while securing the investment needed to intensify their efforts. Beijing is now regarding companies like DeepSeek as national priorities, and investors are consistently providing larger sums.

      Thus, the pressure has resulted in a catalyst for action. Each new restriction offers China another incentive to invest, and the country continues to demonstrate its capacity to do so. Money is flowing, unicorns continue to emerge, and the divide keeps shrinking.