Chinese tech startups are competing for new funding, capitalizing on the interest in artificial intelligence (AI) sparked by DeepSeek and Chinese President Xi Jinping’s recent support for the country’s private companies.

According to venture capitalist Andrew Qian, AI-powered optics startup Rid Vision, brain-computer interface company AI CARE Medical, and robot maker Shanghai Qingbao Engine Robotics are among the Chinese tech startups seeking new funding in the domestic market.

“There are a lot of people knocking on the doors of these AI companies, half to talk about business partnerships, the other half to invest,” said Qian, the managing director of New Access Capital, who has invested in all three companies.

“DeepSeek shows that China is emerging as a disruptive innovator with disruptive technologies. “In the past, Chinese startups were almost all ‘like me,’” Qian said, referring to copycat companies.

AI-related businesses, including chipmakers, cloud service providers, and AI apps, have breathed new life into China’s moribund venture capital sector. However, the outlook for exits from venture capital and private equity investments remains uncertain, with tight regulations on domestic initial public offerings (IPOs) and Sino-US geopolitical tensions threatening overseas listings.

However, DeepSeek’s AI progress and a rare meeting this month between President Xi and tech business leaders have boosted investor sentiment in the short term. New Access Capital has recently invested in a chip manufacturing startup and a millimeter wave antenna company. It also plans to invest in a company focused on missile recovery technologies, betting on the next DeepSeek in these areas.