Introduction

Chinese models often evoke both interest and suspicion when they launch and succeed. But one company stands out, getting attention from the highest caliber of Western media: 01.AI and its founder, Kai-Fu Lee. 01.AI quickly achieved unicorn status in the GenAI space, almost immediately after its launch. The company doesn’t just focus on models; practical products are what Lee is pushing forward. This aligns with his belief that while the U.S. will lead when breakthroughs are needed, China, with its tenacious work ethic and vast market opportunities, can catch up when it comes to executing known technologies.

Kai-Fu Lee is a unique figure. Despite working for China, he is an AI expert whom Bloomberg, The Financial Times, Time, and other Western media regularly turn to for comments, interviews, and stories. Can Kai-Fu Lee manage to influence both China and the US? And where is he driving 01.AI? Let’s explore together.

In today’s episode:

Zero One Everything – how it all started

In March 2023, the legendary Kai-Fu Lee, noticing that China lagged behind in the generative AI race, shook up his network and started to assemble a team. In three months, this effort became 01.AI (known as Zero One Everything in China). It quickly gained momentum, securing $200 million in funding from investors like Alibaba in November and reaching AI unicorn status with a $1 billion valuation.

If you remember from our coverage of Zhipu and Moonshot, China’s AI landscape was originally dominated by the “AI tigers,” which included companies like Zhipu, Moonshot, Baichuan Intelligence, and MiniMax. This group has now evolved into the “AI dragons,” with two AI unicorns added: 01.AI and StepFun.

In June, five of these companies announced a strategic partnership with Alibaba to help the tech giant develop advanced generative AI features for DingTalk, Alibaba’s enterprise communication platform. From the very beginning, this has been Kai-Fu Lee’s approach: focusing on practical applications of AI as the only way for China to catch up with the US in the AI race.

The master behind the idea – Kai-Fu Lee

I first learned who Kai-Fu Lee was in 2018, devouring his just-published book