A recent report shows that U.S. investors are looking beyond their borders, and in particular, to China’s rapidly growing AI industry. The report highlights the extent to which U.S. investors are willing to invest in China’s AI sector and the potential benefits this can bring. This blog post will dive into the report’s details and examine why U.S. investors invest in China’s AI sector. We’ll also explore many things here. So sit back, grab a cup of coffee, and get ready to learn about the exciting world of U.S. investment in China’s AI sector.
Approximately 20% of investments made in Chinese AI firms between 2015 and 2021 have been provided by U.S. investors, including Intel Corp and Qualcomm Inc’s investment divisions, as per a report on Wednesday.
CSET, a tech policy group affiliated with Georgetown University, has recently made public a record closely related to the increasing interest in U.S. investments in AI, Quantum, and semiconductors as the Biden administration prepares to announce new limitations on U.S. financial support of Chinese tech firms.
The report revealed that among the investments into Chinese AI companies during the specified period, 17% were from 167 American investors who completed 401 transactions.
A total of $40.2 billion was invested in these transactions, which accounted for 37% of the amount raised by Chinese artificial intelligence firms from 2014 to 2020.
The report, obtained from data provider Crunchbase, did not specify what percentage of the funding was provided by U.S. companies.
The artificial intelligence (AI) industry is rapidly growing, and investors worldwide are eager to take action. One of the most promising markets for AI investment is China, and a recent report shows that U.S. investors have plowed billions of dollars into the country’s AI sector.
GGV Capital led the way among U.S. firms investing in Chinese AI companies, with 43 investments overall – more than Qualcomm Ventures and Intel Capital combined, who backed 13 and 11 investments, respectively, according to the data.
The Biden administration is expected to issue a presidential decree in 2021 to restrict certain American investments in Chinese tech sectors.
Washington figures have accused US investors of providing their financial resources and skill to Chinese tech companies, which could assist China in strengthening its military.
The report states that GSR Ventures, a U.S. investor, put money into a Chinese AI firm in collaboration with China’s iFlytek Co Ltd (002230. SZ) not long after the speech recognition company was included on a trade blacklist.
Silicon Valley Bank and Wanxiang American Healthcare investments group invested in Chinese AI companies, including SenseTime, before the latter was on the trade blocklist. The firm is a major player in facial recognition technology.
The blocklisting of both companies in 2019 was due to their supposed involvement in the infringement of human rights concerning Uighur Muslims. This means they are now barred from receiving tech exports from the United States.
Goldman Sachs (GS.N) recently invested in 1KMXC, an AI-enabled robotics company, while three U.S.-based venture capital firms also invested money into Geek+, which produces autonomous mobile robots, as per the report.
According to CSET, only one Chinese AI firm that has been granted investment from American venture capitalists is creating AI programs for military or public safety initiatives.