Goldman Sachs has significantly upgraded its revenue outlook for China's artificial intelligence model market, projecting run-rate revenues to reach US$13 billion.
The investment bank increased its forecast by 30%, citing a combination of rapidly advancing technical capabilities and improved cost efficiency among domestic AI developers.
The revision reflects growing confidence in the commercial viability of Chinese AI models, which are increasingly capturing global token share.
Goldman Sachs highlighted the progress of homegrown players such as DeepSeek and MiniMax, noting that their ability to slash operational costs while boosting performance is reshaping the competitive landscape.
This shift suggests that Chinese firms are no longer just replicating Western models but are establishing a distinct, cost-advantaged position in the global AI ecosystem.
This positive outlook arrives amid a broader surge in investor appetite for Chinese technology assets.