China's $8.2 Billion Fund Targets AI Startups In The Race For Global Tech Leadership

China has announced a 60 billion yuan (US$8.2 billion) government-aided fund for jump-starting early-stage artificial intelligence projects, consolidating its ambition to dominate the global AI race.

The move comes amidst escalating trade tensions with the U.S. and an increasing country-wide push for technological self-sufficiency.

What Happened: Zhang Jianhua from the Ministry of Industry and Information Technology said the AI Industry Investment Fund was set up in January with support from the Big Fund's third phase, according to the South China Morning Post.

Moderated by state-owned Guozhi Investment, the fund will invest throughout the AI supply chain, including computing power, data, algorithms, and applications. Embodied AI, which refers to intelligent systems in physical form, is a key area of focus.

"The development of embodied AI will provide an effective path for the commercialisation of AI," Zhang said.

See Also: China’s AI Boom Is Reshaping The Global Economy—And The U.S. Isn’t Ready

Why It Matters: Launched almost immediately after new U.S. tariff policies, the fund highlights China's push for tech independence. With the AI market estimated to hit 5.6 trillion yuan by 2030, Beijing is using state capital to stay ahead of the curve.

Zhang added the fund will actively back companies in Shenzhen, stating: "The National AI Industry Investment Fund is willing to work with all relevant parties in Shenzhen to increase capital, confidence and capacity."

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