(Yicai Global) Sept. 20 --DronemakerDJI,identity verification providerMegvii Technology,and artificial intelligence chipmakerCambricon Technologies are on a list of the top 50 Chinese AI firmscompiled byChina Money Network, an AI-basednewsplatformthattracksChina'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 saidata press conference.The team behind the report looked into "technical capability andafirm's business development."

Of the50 companies,27 are backed by Chinese government funds and/or the tech giants Baidu, AlibabaGroup Holdingand TencentHoldings,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 speculativeand overvalued, Xiang said. "Some companies lack core technology capabilities, but their valuations doubled within only several months, nonetheless," she said. "A consensus prevailswithin the sectorthat it is 'overheating.'"

Around 80 percent of the startups have completed series-B or later investment rounds,while 81 percent of AIsector firmshave just completed series-Afunding.

Some55.6 percent of these firms' founders have doctoral orhigherdegrees and over 73 percent holdat least a master's degree. Just two have women founders.

The list was produced after months of thorough investigationsintoover 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