China has officially announced a significant step in its technological journey, revealing details about a state fund worth 60 billion yuan (approximately US$8.2 billion) dedicated to early-stage investments in artificial intelligence (AI). This initiative underscores Beijing’s commitment to fostering advancements in the AI industry through state-backed finance.

During a conference in Shenzhen, Zhang Jianhua, an official from the Ministry of Industry and Information Technology, shared that this AI Industry Investment Fund was established in January under the supervision of the industry and finance ministries. This information was reported by the state-run Shanghai Securities News.

The fund aims to bolster China’s strategy for growth by making equity investments, leveraging contributions from Phase III of the China Integrated Circuit Industry Investment Fund. This fund is primarily aimed at enhancing investment in the chip industry.

The so-called Big Fund, which initiated its third phase last year with a registered capital of 344 billion yuan, reflects China’s broader ambitions to achieve self-sufficiency in semiconductors.

Guozhi Investment (Shanghai) Private Equity Fund Management, a state-backed entity, is set to manage the newly established AI fund. This initiative highlights Beijing’s ongoing efforts to accelerate the development of its AI industry amidst increasing global competition and US restrictions that aim to limit China’s access to advanced technologies.