New AI fund in China to pour US$8 billion into early-stage projects

The AI Industry Investment Fund was established by the industry and finance ministries with money from the Big Fund

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Visitors watch a Tiangong humanoid robot, developed by Beijing-based National and Local Co-built Embodied AI Robotics Innovation Center, at the Robot World in Beijing on February 24. Photo: Xinhua

Ann Caoin Shanghai

Published: 9:00am, 11 Apr 2025

China has disclosed details about a 60 billion yuan (US$8.2 billion) state fund aimed at early-stage investments in artificial intelligence (AI) projects, underscoring Beijing’s commitment to advancing the industry through state-led investments.

Zhang Jianhua, an official from the Ministry of Industry and Information Technology overseeing the fund, said at a conference in Shenzhen that the AI Industry Investment Fund was established in January under the guidance of the industry and finance ministries, the state-run Shanghai Securities News reported on Thursday.

The fund will support China’s state-led strategy through equity investments, with contributions from Phase III of the China Integrated Circuit Industry Investment Fund, the state-backed fund aimed at supporting chip industry investment, according to Zhang.

The chip industry fund, also known as the Big Fund, established the third phase last year with a registered capital of 344 billion yuan, which was seen as part of the country’s broader push for semiconductor self-sufficiency.

The AI fund will be managed by Guozhi Investment (Shanghai) Private Equity Fund Management, a state-backed company, according to Zhang.

The details highlight Beijing’s latest efforts to boost its AI industry development amid a global race for technological dominance and increasing US restrictions aimed at curbing China’s access to advanced technologies.