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Despite global frenzy, investor enthusiasm in China’s AI startups wanes
In 2023, the global frenzy around artificial intelligence, fueled by the advent of ChatGPT, swept across the world. In China, where OpenAI's chatbot is
The prospect of listing Chinese tech firms on U.S. stock markets has also dimmed amid geopolitical tensions, so investors grew more cautious about backing hyped-up businesses with no clear exit channels or monetization plans. Moreover, the capital-intensive nature of AI startups, which cost significant computing power, coupled with their unproven business models, can deter risk-averse local RMB funds. But before they can engage with American institutions, they need to have the appropriate corporate structure, offshore data storing solutions, and even foreign passports for their founders so the Silicon Valley investors won’t worry about violating U.S. restrictions on China-related investments.
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