Shanghai’s AI Ambitions Get a Boost with Latest Funding Round
The city of Shanghai is doubling down on its artificial intelligence (AI) ambitions, with a recent funding round led by Fortera Capital, a private-equity firm under the Shanghai State-owned Capital Investment Co (SSCIC). The investment vehicle has helped AI firm Stepfun raise hundreds of millions of dollars, marking a significant milestone in the city’s efforts to support domestic AI development.
A Strategic Investment in AI
Fortera Capital’s involvement in Stepfun’s series B financing is a testament to Shanghai’s commitment to fostering innovation in strategically important industries. The city has announced plans to set up a 100 billion yuan (US$13.8 billion) fund of funds to support start-ups in AI, biotechnology, and semiconductors. This initiative reflects the city’s growing efforts to bolster technological innovation and create an internationally competitive AI industry cluster.
Stepfun’s AI Breakthroughs
Founded by Microsoft Asia Research Institute’s former chief scientist Jiang Daxin, Stepfun is one of a growing number of Chinese AI start-ups trying to catch up with innovation by US peers. The company has made significant breakthroughs in AI, including the launch of the Step-1V multimodal large language model with over 100 billion parameters. Stepfun is now testing its Step-2 model, which boasts more than 1 trillion parameters, enabling it to adapt to more complex data patterns and make precise predictions.
A Growing Trend in AI Investments
Stepfun’s successful funding exercise comes on the heels of another AI start-up, Zhipu AI, raising 3 billion yuan in a funding round led by various state-backed investment vehicles. The trend is clear: Chinese local governments are extending support for AI development, and investors are taking notice. With Big Tech firms like Alibaba Group Holding and Tencent, as well as prominent venture capital firms Qiming Venture and Legend Capital, investing in AI start-ups, the future of AI in China looks bright.
Shanghai’s AI Ecosystem Takes Shape
As Shanghai continues to support AI innovation, the city’s AI ecosystem is taking shape. With initiatives like the 100 billion yuan fund of funds and investments in start-ups like Stepfun and Zhipu AI, Shanghai is poised to become a hub for AI development in China. The city’s efforts to foster innovation and support domestic AI development are likely to have far-reaching implications for the industry as a whole.
Leave a Reply