U.S. investors have plowed billions into China's AI sector, report shows - Reuters

Feb 1, 2023 ·

US investors have invested billions of dollars into China's Artificial Intelligence (AI) sector over the last five years, according to a new report.

The report, released by PwC and China Venture capital firm Zero2IPO Group, claims that some US$12.5 billion was poured into Chinese AI start-ups between 2014 and 2019, with most of this coming from US venture capitalists.

The report highlights the ongoing interest in Chinese AI technology from US venture capitalists, with $4.6 billion being invested between 2018 and 2019 alone. It also reveals that companies backed by US investors have been successful in acquiring larger amounts of funding than their domestically funded competitors.

The majority of the investments made were in software and information technology, followed by internet companies and medical technology. This reflects the increasing role of AI in all aspects of business, as well as the need for sophisticated algorithms and data analysis.

The report also found that US investors have increased their presence in China over the last five years, investing in more than 40% of all AI start-ups. This is despite ongoing trade tensions between the two countries, which has seen some US technology companies banned from doing business in China.

Overall, the report paints a positive picture for the future of Chinese AI, with the sector continuing to attract large amounts of investment from abroad. Furthermore, it suggests that US investors are willing to invest in Chinese AI even when there are political differences between the two countries. This could provide an important source of capital for Chinese start-ups looking to expand their operations outside of their home market.