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The Pudong New Area in Shanghai, a designated pilot free trade zone, has introduced a new artificial intelligence fund valued at CNY2 billion (USD278 million). This fund is specifically created to support startups and to drive advancements in cutting-edge AI technologies.
Led by the Pudong Venture Capital Group, a subsidiary of the local government, the fund’s initial phase allocates CNY500 million (USD69.9 million) for early-stage startups. This focus on seed-stage companies was announced during the Pudong New Area Global Promotion Conference for the AI Industry Ecosystem held yesterday.
A seed-stage startup is a company that has completed its initial development phase but hasn’t yet achieved significant commercial success. Such startups typically seek funding to validate their business models, develop prototypes or early products, conduct market research, or build their teams.
The fund usually invests between CNY300,000 and CNY5 million (USD41,935 to USD698,910) per project. According to Men Qingbing, general manager of the Pudong Venture Capital Group, investments are already in place for 18 startups.
“The fund will employ flexible investment methods, including equity stakes, convertible bonds, and models where investment precedes equity, tailored to each startup and its founders to support rapid project execution,” Men explained.
He added, “The seed fund is mainly aimed at transforming AI research achievements into practical applications. We have partnered with research and development achievement commercialization centers at major universities, including institutions in Hong Kong. Our goal is to turn AI research outcomes into real-world solutions in Pudong, attracting top AI talents to innovate and start new businesses in the area.”
Men emphasized the importance of accelerating the commercialization of AI foundational research in Pudong, transforming the region into a globally recognized hub for specialized AI ecosystem development.
Pudong is among China’s earliest zones designated for AI innovation and application, with its AI sector valued at over CNY160 billion (USD22.4 billion), representing about 40% of Shanghai’s total AI industry. The region’s intelligent computing power accounts for nearly half of Shanghai’s overall capacity. More than 200 specialized AI companies are based in Pudong, with 28 of their models having completed registration or filing processes.
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