(Yicai Global) Sept. 20 -- Dronemaker DJI, identity verification provider Megvii Technology, and artificial intelligence chipmaker Cambricon Technologies are on a list of the top 50 Chinese AI firms compiled by China Money Network, an AI-based news platform that tracks China's venture capital and technology sectors.

The China AI Top 50, which lists companies alphabetically and not by ranking, includes 14 startups valued at USD1 billion or more that together are worth USD40.2 billion. The 66-page report was published yesterday at the 2018 Summer Davos Forum in Tianjin, East China.

"Some of these companies are experiencing phenomenal growth and some have expansive prospects," China Money Network founder Nina Xiang said at a press conference. The team behind the report looked into "technical capability and a firm's business development."

Of the 50 companies, 27 are backed by Chinese government funds and/or the tech giants Baidu, Alibaba Group Holding and Tencent Holdings, Xiang added. The most active investors in the companies include Sequoia Capital China, Tencent, Alibaba and its related entities, along with Zhen Fund and AI expert Kai-Fu Lee's Sinovation Ventures.

But China Money Network also found the AI market to be speculative and overvalued, Xiang said. "Some companies lack core technology capabilities, but their valuations doubled within only several months, nonetheless," she said. "A consensus prevails within the sector that it is 'overheating.'"

Around 80 percent of the startups have completed series-B or later investment rounds, while 81 percent of AI sector firms have just completed series-A funding.

Some 55.6 percent of these firms' founders have doctoral or higher degrees and over 73 percent hold at least a master's degree. Just two have women founders.

The list was produced after months of thorough investigations into over 1,000 firms through research, data collection and weighted evaluation, Xiang said, adding that aspects considered include five areas: tech capability, product maturity, funding, business fundamentals, and future potential.

Editor: Ben Armour