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A major Chinese private equity firm’s venture capital division, together with a state-owned investment entity, have jointly launched a new fund totaling 2 billion yuan (approximately $281.4 million) aimed at developing an innovation hub for 1,000 artificial intelligence companies in Shanghai.
The fund, established by a prominent venture capital firm and the local government-backed venture capital group, will concentrate on broad-ranging AI tech innovation and the application of AI across diverse sectors, according to an announcement made yesterday. It aims to support the growth of the Zhangjiang AI Innovation Town and foster the emergence of AI unicorns.
Located in Zhangjiang Science City within Shanghai’s Pudong New Area, the AI hub will span two square kilometers. It will feature about 700,000 square meters of industrial space, one million square meters of commercial facilities, and 7,000 residential units for professionals. The vision is to build a comprehensive industrial ecosystem integrating research, ecological development, practical application, and residential life.
Plans for the Zhangjiang AI Innovation Town aim to attract 500 AI companies initially, with ambitions to establish three to five globally leading firms by 2027. By 2030, the park hopes to host 1,000 AI enterprises and achieve a valuation in the hundreds of billions of yuan, establishing itself as a pivotal international hub for AI innovation and industry.
The new fund will coordinate investments with the Pudong Venture Capital’s AI Seed Fund, jointly supporting the development of the AI innovation zone. This CNY2 billion seed fund was introduced at the World AI Conference in July and is dedicated to investing in startups.
Pudong remains one of China’s pioneering zones for AI innovation and deployment, with the local sector surpassing CNY160 billion (about $22.5 billion) by the end of last year, representing nearly 40% of Shanghai’s total AI industry. More than 600 leading AI companies operate there across various fields, including smart devices, autonomous vehicles, education, finance, media, and emerging digital economies.
In July of the previous year, Shanghai established three major Funds of Funds to accelerate the development of strategic industries, with a combined total of CNY100 billion (roughly $14.1 billion). One of these, the AI-focused Fund of Funds, allocates CNY22.5 billion ($3.2 billion) to typical AI ventures.
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