SHANGHAI, April 22 -- Young Chinese, many who fear age discrimination in their workplace after turning 35, are increasingly starting "one-person companies" that have artificial intelligence do most of the work.

Smaller startups are already in vogue in Silicon Valley and elsewhere, with rapidly advancing AI tools seen as a welcome teammate even as they threaten layoffs at existing firms.

More young people in China are subscribing to the model, as cities pledge millions of dollars in funding and rent subsidies for such ventures, in alignment with Beijing's political goal of "technological self-reliance".

"The one-person company is a product of the AI era," said Karen Dai, founder of Shanghai-based SoloNest, which hosts weekend events for...