Shenzhen, China, has announced the launch of a new investment fund, valued at US$1 billion. The fund’s primary objective is to support the growth of artificial intelligence (AI) hardware startups operating within the city.

This initiative is designed to stimulate innovation and development in the crucial AI hardware sector, an area with strategic importance for China’s technological advancement. The fund is expected to provide financial resources, potentially including seed funding and venture capital, to promising companies focusing on AI-related hardware.

The investment focus will likely encompass a range of AI hardware technologies. This could include areas such as processors, specialized chips, and related components crucial for the operation and advancement of AI systems.

Shenzhen’s government hopes the fund will cultivate a thriving ecosystem. It aims to attract talent and establish the city as a leading hub for AI hardware innovation. By providing capital and other resources, the city plans to encourage rapid growth in an increasingly competitive global market.

The fund’s launch comes amidst increasing global competition in AI. This further highlights China’s dedication to becoming a leader in the technology sector and supporting its domestic businesses by providing financial backing and a supportive business environment.