Chinese AI firms start to crack profit code in niche markets
theborneopost.com Mar 30, 2026

Chinese AI firms start to crack profit code in niche markets

AI-summarised brief · reviewed before publication

Chinese AI firms are achieving sustainable profitability in specialized markets, leveraging the country's industrial scale and market volume. XtalPi, an AI drug discovery company, turned a profit of $19.5 million in 2025, after increasing R&D expenditure by 36%. The company's success demonstrates China's strategy of integrating AI with its industrial base to capture advantages in sectors like biopharmaceuticals, with revenue-generating clients increasing by 62% year on year.