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AsianFin -- China's iconic liquor brand Kweichow Moutai, with a market capitalization nearing 2 trillion yuan, is expanding beyond spirits and into artificial intelligence, joining a new funding round for AI startup ModelBest.
ModelBest announced on May 21 that it has secured several hundred million yuan in fresh capital, co-led by Moutai Fund, Hong Tai APlus, Guozhong Capital, and SinoKing Capital.
The funding will fuel the company's efforts to develop more efficient large language models and accelerate deployment of "on-device intelligence" across multiple industries.
"Large models have now entered a phase of rapid industry empowerment," said ModelBest CEO and co-founder Li Dahai. "With this new round of funding, we'll deepen our competitive edge and advance the commercialization of high-performance, low-cost large models to help usher in the AGI era."
Founded in 2022, ModelBest has quickly risen as a prominent AI player in China, backed by Tsinghua University affiliations. It has independently developed the CPM language model series, including the MiniCPM "Pocket Rocket" — an ultra-efficient on-device model that supports capabilities comparable to ChatGPT, GPT-4V, and GPT-4o. MiniCPM models now boast over 10 million cumulative downloads across Hugging Face, ollama, and ModelScope platforms.
ModelBest is positioning itself at the forefront of "edge-first" AI innovation — designing models that run directly on smart devices rather than in the cloud. In January, it launched the MiniCPM-o 2.6, a fully on-device multimodal model with industry-leading performance. The company is actively partnering with leading automakers like Changan Auto, SAIC Volkswagen, and Great Wall Motors to integrate its technology into smart cockpits. It also collaborates with tech giants including Qualcomm, Intel, MediaTek, and Aptiv to drive AI adoption in consumer electronics and automotive applications.
The deal marks a striking pivot for Kweichow Moutai, best known for its premium baijiu. Through its Moutai Fund, the company has been quietly building a diversified portfolio. In August 2023, it established the 5.51-billion-yuan Moutai Zhaohua Fund and Moutai Jinshi Fund, aimed at strategic sectors like biotech, next-gen IT, and new energy. Moutai's latest venture into AI aligns with its broader push into tech innovation and strategic emerging industries.
Backers of ModelBest are bullish on its edge-focused strategy. Hong Tai APlus praised the startup's emphasis on "knowledge density" and anticipates a shift from graphical to voice-driven user interfaces as AI agents gain control over smart devices. SinoKing Capital highlighted ModelBest's "lightweight yet powerful" architecture as key to enabling intelligent terminals, while Guozhong Capital emphasized the company's role in showcasing "Chinese-style innovation" on the global AI stage.
ModelBest is among a select group of Chinese AI companies spotlighted by MIT Technology Review as ones to watch in 2025, alongside DeepSeek, Mianbei Intelligence, Zhipu, and Step Star.
As the global race for AI dominance intensifies, Moutai's entry signals growing convergence between China's industrial giants and its emerging tech champions — with edge AI now in the spotlight as the next major battleground.
