Ex-Microsoft VP’s StepFun Raises $717M for Chinese AI Infrastructure

StepFun has raised more than $717 million (RMB 5 billion) in a Series B+ funding round, making it one of the largest private financings for an artificial intelligence company in China.

The Shanghai-based startup was founded by Daxin JiangDealroom has a profile for this one. Try Dealroom →, a former senior executive at Microsoft, where he worked on large-scale AI and cloud systems.

Alongside Jiang, the company’s leadership includes chief scientist Xiangyu ZhangDealroom has a profile for this one. Try Dealroom → and chief technology officer Yibo ZhuDealroom has a profile for this one. Try Dealroom →, reflecting a focus on large-scale model development and systems engineering from the outset

Since launching in 2023, StepFun has focused on building large foundation models and AI “terminal agents”, with increasing emphasis on integrating its software directly into hardware.

StepFun says the new capital will be used to advance core model development, expand deployment in real-world settings and accelerate work on AI systems designed to operate closer to end users rather than relying solely on cloud infrastructure. The company has positioned this approach as a way to improve performance and reduce costs as AI applications scale.

The size of the round stands out in the context of recent listings. In early 2026, AI companies Zhipu AI and MiniMax raised roughly $558 million and $620 million respectively through Hong Kong IPOs, both below StepFun’s latest private raise.

Sources:
Tech in Asia
Pandaily
TechNode
Caixin Global
Yicai Global
KrAsia

Image source:
South China Morning Post

J.V.