China and Japan AI Apps: Doubao, Kimi, DeepSeek, LINE — 2026-09-16
DeepSeek has released its new V4.1 Flash model, intensifying competition with ByteDance’s Doubao, which continues to dominate China’s consumer AI market with 382 million monthly active users. In Japan, a new survey reveals that over 50% of users now utilize generative AI as a primary search tool, signaling a shift in consumer behavior. Meanwhile, Chinese AI lab Zhipu AI announced a massive $5 billion fundraising plan to sustain its competitive edge against domestic rivals.
China and Japan AI Apps: Doubao, Kimi, DeepSeek, LINE — 2026-09-16
Top developments
DeepSeek Launches V4.1 Flash to Challenge Doubao
On September 10, 2026, DeepSeek released the V4.1 Flash model, a 552-billion-parameter Mixture-of-Experts (MoE) model with native multimodal support. The model is accessible via the API by changing the model name to deepseek-flash. This release is critical for the Daily desk as it represents DeepSeek’s effort to regain momentum after its monthly active users (MAU) dropped to 94.17 million in July 2026, down 21.1% year-over-year, while remaining behind Doubao and Qwen.
Doubao Maintains Dominance with 382 Million MAU
ByteDance’s Doubao remains China’s most-used AI application, recording 382 million monthly active users as of June 2026. This figure places it significantly ahead of Alibaba’s Qwen (167 million) and DeepSeek (129 million). The dominance of Doubao underscores ByteDance’s strategy of leveraging its ecosystem to drive user acquisition, creating a significant barrier for competitors like Tencent’s Yuanbao and Moonshot’s Kimi.
Zhipu AI Announces $5 Billion Fundraising Plan
On September 13, 2026, Zhipu AI (02513.HK), a major Chinese AI lab and competitor to the big tech apps, disclosed a new financing plan totaling approximately $5 billion. This includes a $2 billion H-share placement and $3.016 billion in zero-coupon convertible bonds. The move comes just two months after a previous HK$31.4 billion placement, reflecting the intense capital requirements of the current AI race and investor concerns over dilution.
Japan: Generative AI Becomes Primary Search Tool for Over 50% of Users
A recent survey by CyberAgent’s GEO Lab found that more than 50% of Japanese users now use generative AI as a search method. This marks the first time AI search adoption has surpassed this threshold in Japan. While ChatGPT remains the leader, Google’s Gemini showed the highest growth rate in adoption among Japanese consumers, indicating a shifting landscape in how Japanese users access information.
Local view
In Japan, media outlets are focusing on the behavioral shift toward AI-assisted decision-making. Sankei Shimbun reported on a study indicating that 66.3% of generative AI users utilize it for comparing products during purchase decisions, with 65.2% of those users stating it influenced their final choice. Additionally, ICT Research Institute noted that the number of generative AI service users in Japan is projected to reach 35.53 million by the end of 2026. In China, local tech media like FX168 are closely tracking the "AI Application Weekly Observation," highlighting the rapid iteration of models like DeepSeek V4.1 Flash and the strategic pivots of major tech giants toward "AI digital employee" office agents.
Context & numbers
- China MAU Rankings (June 2026): Doubao leads with 382 million MAU, followed by Qwen (167 million) and DeepSeek (129 million).
- DeepSeek Web Traffic: Despite lower app MAU, deepseek.com drew 353.8 million visits in August 2026, representing about 6% of ChatGPT's traffic.
- Japan AI Adoption: The number of generative AI users in Japan is expected to hit 35.53 million by year-end 2026.
- User Stickiness: In China, the percentage of users spending more than 10 minutes on Doubao, DeepSeek, and Kimi was 27.5%, 30.0%, and 26.1%, respectively, showing improved engagement compared to previous periods.
On the radar
- Zhipu AI Dilution Impact: Investors are watching how the recent $5 billion raise affects Zhipu’s stock price and its ability to compete with better-capitalized giants like ByteDance and Alibaba.
- Gemini Growth in Japan: Monitor whether Gemini can sustain its high growth rate in Japan to challenge ChatGPT’s dominance in the consumer search segment.
- Doubao Work Integration: Keep an eye on the integration of ByteDance’s TRAE and Coze tools into the Doubao super-app, which aims to compete directly with Tencent’s WorkBuddy in the enterprise AI space.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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