Chinese artificial intelligence company Xipu AI has launched a new AI tool called AutoLM Rumination that offers advanced research and planning capabilities for free. This tool can conduct in-depth research, create detailed reports, and help users in organising tasks.

Zhipu claims that its AI is powered by proprietary models that run up to eight times faster and use only a small fraction of computing resources, matching the performance of DeepSeek R1, a leading AI system. The announcement comes as China's AI sector is experiencing rapid growth, with major companies such as Alibaba and Tencent introducing new models at an accelerated pace.

The startup, which acquired 69 million shares in the defunding, reached $2.74 bn in value as it raised $137m weekly. Xipu is getting support from tech giants Tencent, Alibaba and Chinese state-owned firms. However, the company faces challenges - earlier this year, the U.S. Department of Commerce blocked Shipoo's access to American-made components by placing it on an export control list.

At the same time, Alibaba has introduced a new AI model, the Qwen 32B, which provides performance comparable to large systems. DeepSeek, another major player in China's AI competition, has upgraded its DeepSeek-V3 model, which is now ranked as one of the best non-reasoning AI systems. The company is also gearing up to launch the DeepSeek R2, which is expected to land ahead of schedule.

As Chinese tech firms advance AI innovation at an unprecedented pace, China is rapidly evolving in the global AI landscape.