Key TakeawaysCombined annual recurring revenue of China’s leading AI models represents approximately 10% of OpenAI and Anthropic’s earningsOpenAI generates $40 billion in ARR while Anthropic reports $65 billionByteDance dominates Chinese AI market with $4 billion ARR, while DeepSeek trails at $500 millionValuation multiples for Chinese AI startups significantly exceed US counterparts, with DeepSeek at 163x compared to OpenAI’s 34xCapital access challenges and volatile equity markets may hinder growth trajectory for Chinese AI laboratoriesChina’s AI companies are experiencing rapid expansion, yet their revenue generation remains significantly below that of American competitors, based on fresh analysis from Rhodium Group.JUST IN: OpenAI & Anthropic are generating roughly 10x more revenue than all Chinese AI models combined. — CNBC— Polymarket (@Polymarket) September 17, 2026The analysis reveals that China’s entire portfolio of top-tier AI models collectively produces roughly 10% of the annual recurring revenue generated by OpenAI and Anthropic combined. This substantial disparity shows little indication of narrowing in the near term.According to Rhodium’s calculations, OpenAI commands $40 billion in ARR while Anthropic reports $65 billion. These figures substantially overshadow current earnings from Chinese market players.ByteDance stands atop the Chinese competitive landscape with $4 billion in ARR, trailed by Alibaba at $2.4 billion. Z.ai, the company previously operating as Zhipu AI, disclosed to investors this week that its ARR had climbed to $1.8 billion.Moonshot recorded $1 billion in ARR, MiniMax reported $800 million, while DeepSeek registered $500 million. The collective total from these Chinese firms still represents a fraction of OpenAI’s standalone performance.Sky-High Valuations Despite Revenue GapChinese AI ventures command elevated valuation multiples despite generating comparatively modest revenues. Rhodium’s assessment placed DeepSeek’s valuation-to-revenue ratio at 163x, with Moonshot at 50x.In contrast, OpenAI trades at 34x and Anthropic at 21x. Rhodium’s analysis characterized the valuations assigned to Moonshot and DeepSeek as “exorbitant” when measured against their present revenue performance.These metrics indicate investor confidence in aggressive expansion that remains unrealized in current financial results.Capital Access and Growth ObstaclesLogan Wright, Rhodium Group partner and report co-author, highlighted significant financing hurdles confronting Chinese AI laboratories moving forward.“The financing gap means it will be far more difficult for Chinese frontier AI labs to scale sustainably,” Wright stated. He emphasized that government funding in China has concentrated primarily on semiconductor and server infrastructure rather than model development companies.Rhodium’s research determined that state-connected investment sources accounted for over 60% of equity capital flowing into Chinese AI chip manufacturing and hardware infrastructure.Wright further observed these companies will depend substantially on equity markets, which have demonstrated considerable volatility historically within China.Intelligence from Artificial Analysis indicates that premier US models from OpenAI and Anthropic maintain predominantly closed-source architectures and command higher per-task pricing than Chinese competitors. Chinese models have gained market traction partially through aggressive pricing strategies.Multiple Chinese AI enterprises are now advancing toward public market debuts. Moonshot has allegedly submitted confidential documentation for a Hong Kong IPO, with DeepSeek similarly preparing for its listing.Regarding American companies, Anthropic anticipates its public offering in October. OpenAI has reportedly deferred its listing timeline to the following year.The Rhodium analysis delivers an unambiguous assessment: while Chinese AI companies demonstrate growth momentum, the revenue disparity with US industry leaders remains substantial, and the strategy for bridging this divide remains ambiguous.The post Revenue Gap Widens: Chinese AI Firms Earn Just 10% of US Competitors appeared first on Blockonomi.