November 27, 2025
Chinese AI Stocks: 3 Companies Powering China's Tech Boom
While US breakthroughs in artificial intelligence continue to dominate headlines, a similar AI revolution is quietly unfolding in China. From AI models with trillions of parameters to self-driving robotaxis, China is rapidly building a vast, integrated domestic AI ecosystem that is closing the technological gap with the West.
Here, we are going to highlight three Chinese AI stocks that are at the heart of this revolution. We believe these companies have AI technology that matches that of companies in the US and are rapidly deploying innovative solutions at scale today.
Baidu Has a Comprehensive AI Ecosystem
While Baidu built its reputation as a dominant search engine, it is increasingly being recognized as an AI powerhouse. Not only does it have a multimodal AI model, but it also has its own AI chips and a self-driving taxi unit.
At the Baidu World 20251 conference in November, Baidu released ERNIE 5.0, the latest version of its AI model. With 2.4 trillion parameters, this model is double2 the size of Alibaba’s Qwen3-Max and Moonshot AI’s Kimi K2 series, both of which rank among the world’s top AI systems with over 1 trillion parameters. As a natively omni-modal model, ERNIE 5.0 can jointly model text, images, audio, and videos and excels in instruction following, factual reasoning, agentic planning, and tool use. The company plans to continue investing in advancing its models, pushing the boundaries of intelligence to new heights.
At its annual conference, Baidu also unveiled two new AI chips - the Kunlun M100 and M300. The M100 is designed to support large-scale inferencing workloads and will launch in early 2026 while the M300 has been developed for training and inferencing and is targeted for 2027. Additionally, the company announced two “supernode” solutions that link multiple chips together - the Tianchi 256 and Tianchi 512. The 256 - which offers a 50%-plus performance gain in serving AI systems compared with its previous cluster - will be available in the first half of 2026 while the 512 will be available in the second half of the year.
Another major release at Baidu World 2025 was the company’s new real-time interactive digital humans. These are essentially avatars that can understand real-world context and express natural emotions with full-modal alignment during interactions. Designed to function as digital employees, they are capable of providing 24/7 service. The technology has debuted in Brazil and the company is now exploring expansion opportunities in key markets such as the US and Southeast Asia.
Zooming in on Baidu’s robotaxi segment, Apollo, this is now processing 250,000 orders per week. To date, it has provided 17 million rides globally - more than any other robotaxi company in the world. Looking ahead, the company believes that autonomous driving will transform not only transportation in China but the broader social ecosystem. As costs associated with the technology continue to fall, demand is expected to rise.
Xiaomi Has Smart Glasses and AI-Powered Driving Technology
Best known for its smartphones and electric vehicles (EVs), Xiaomi is another Chinese company that is fast becoming a leader in AI. Recently, it has been leveraging its proprietary models to integrate the technology across its ecosystem.
On the consumer device side of the business, Xiaomi has been active in the smart glasses space in 2025. Earlier this year, it released its Xiaomi AI Glasses3, which feature an AI-powered voice assistant, a 12MP camera with electronic image stabilization (EIS), five microphones, and two speakers. With these glasses, users can take photos and record videos, translate languages in real time, pay-by-glance via Alipay, and more. Battery life is up to 8.6 hours, which is better than that of Meta’s smart glasses.
Turning to the EV side of the business, Xiaomi released HAD (Hyper Autonomous Driving) Enhanced Edition in November4. This is a driver-assistance platform that uses cutting-edge AI technology to make driving significantly safer. A key feature here is "world model" - simulation where the car's computer predicts what will happen next. The foundation for this is massive training data - 10 million video clips of drivers navigating different traffic situations.
It’s worth noting that user adoption of the driver assistance features on Xiaomi EVs has been high. According to the company, over 90%4 of Xiaomi EV owners actively use the assistance features. To date, the features have helped prevent an estimated 457,000 potential collisions. This illustrates the system's real-world value.
SenseTime is Quietly Driving Innovation With AI
Though its name may not be high-profile, SenseTime Group is an important player in the Chinese AI ecosystem. Offering a range of AI solutions including advanced large language models and smart auto technology, it is driving innovation across numerous industries today.
At the heart of SenseTime’s AI offering is its SenseNova technology. This is a set of interconnected models built on the company’s SenseCore AI infrastructure. The latest version is SenseNova V6.55, which was released in July. This surpassed Gemini 2.5 Pro and Claude 4‑Sonnet in text and multimodal reasoning, so it is a powerful model.
One popular consumer application of SenseTime’s SenseNova technology is SenseChat, a generative AI app that is similar to ChatGPT and Gemini. This excels in writing, coding, multi-turn dialogue, logical reasoning, and complex document summarization. Another is SenseAvatar. This is a platform for creating and animating photorealistic 2D/3D digital human avatars for e-commerce, media, and customer service.
SenseNova also has commercial applications, however; one being SenseFoundry. This is a comprehensive Smart City software platform that takes massive amounts of raw video and sensor data from public systems (traffic cameras, city infrastructure, environmental monitors, etc.) and turns it into real-time, actionable insights using AI. A second commercial application is SenseEarth. This is a powerful AI-powered geospatial analytics and applications platform that analyzes satellite imagery and provides automated insights for a wide range of industries including crop monitoring, port monitoring, and construction monitoring.
On the smart auto side of the business (SenseAuto), SenseTime works with auto manufacturers to integrate AI into vehicles. Here, one of its flagship solutions is the SenseAuto Pilot Smart Driving System. This features the SenseAuto Pilot-V6, a wide-angle, 8 million Ultra HD mono-sensing camera that can detect vehicles up to 600 meters away and identify a wide range of traffic signs and road features. Another important solution on this side of the business is its SenseAuto Cabin Smart Cabin System. Here, capabilities include driver identity verification, drowsiness detection, distraction detection, and anomaly detection to enhance overall driving safety.
It’s worth pointing out that SenseTime has partnerships with many other leading Chinese AI businesses. And in October, it announced that it had entered into a strategic partnership7 with semiconductor firm Cambricon to co-develop next-generation AI infrastructure and strengthen the domestic AI ecosystem. This partnership seeks to combine SenseTime's strengths in large-model research and AI platform development with Cambricon's expertise in intelligent computing chips and high-performance processing systems. By working together, the two companies hope to set new benchmarks for AI infrastructure innovation and help China develop scalable, energy-efficient, and industry-ready artificial intelligence systems.
Other Chinese AI Stocks Worth Exploring
While Baidu, Xiaomi, and SenseTime have impressive technology, they are just the tip of the iceberg when it comes to Chinese AI stocks. Today, there are literally hundreds of companies in China with powerful AI models, so investors have a lot of options. As AI gains momentum, it's becoming clear that the technology is likely to be integrated into every facet of the Chinese economy in the future. The companies we've highlighted here are leading the charge, but the true power of China's AI revolution lies in its ecosystem, which contains thousands of innovative technology businesses.
Footnotes:
1PR Newswire, Baidu Unveils ERNIE 5.0 and a Series of AI Applications at Baidu World 2025, Ramps Up Global Push, as of November 13, 2025
2myNews, Baidu unveils AI chips to boost China’s self-sufficiency drive, as of November 13, 2025
3Road Tovr, Xiaomi Unveils China’s Answer to Ray-Ban Meta Smart Glasses with a Few Killer Features, as of June 26, 2025
4Arena EV, Xiaomi EV reveals next-generation driver assistance with 'World Model', as of November 23, 2025
5SenseTime News & Stories, SenseTime Launches the Enhanced SenseNova V6.5: Marking the Leap from AI as a “Tool” to a “Partner”, as of July 30, 2025
6SenseTime, SenseAuto ADAS, as of November 27, 2025
7SenseTime, SenseTime and Cambricon Reach Strategic Cooperation, as of October 15, 2025
