China has created a new artificial intelligence (AI) investment fund, with an initial capital of 60 billion yuan (US$8.2 billion), days after the United States further tightened export controls for advanced semiconductors and placed more Chinese companies on its trade blacklist.
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The National AI Industry Investment fund was incorporated in Shanghai last Friday as a joint venture of state-backed Guozhi Investment (Shanghai) Private Equity Fund Management and the China Integrated Circuit Industry Investment Fund (CICF) Phase III, according to information from local business registry service Qcc.com.
The new AI fund’s scope of business includes general equity investment and asset management, according to the registry service, which did not provide any details.
Its creation reflects Beijing’s determination to advance the nation’s AI capabilities, despite greater tech restrictions imposed by Washington.
Bejing made AI a national priority amid a heightened tech war between the world’s two largest economies. While the central government shores up its support for the nascent sector with favourable policies and mandates, China’s AI market is expected to be worth 5.6 trillion yuan by 2030, according to state-backed investment vehicle China International Capital Corp.
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The US Department of Commerce last week added more than two dozen Chinese entities to its Entity List, accusing them of supporting Beijing’s military advance. Blacklisted companies are barred from buying goods or services from US tech suppliers without a licence, which is generally denied.