(Yicai) April 15 -- Guangzhou has launched a CNY20 billion (USD2.9 billion) fund to ensure that the local artificial intelligence industry has ample funding and opportunities for application to support the first-tier Chinese city's plan of becoming a global hub for vertical AI models.

The special investment fund will leverage a "small investment" from the Guangzhou government to attract "large capital" from the private sector, promoting the development of the local AI industry, Liu Zhiguang, deputy director of the Guangzhou Municipal Finance Bureau, said at a launch press conference yesterday.

Guangzhou's financial contribution to the fund will not exceed 35 percent, with the city and district governments contributing at most 40 percent combined. Three sub-funds will be set up in the first phase, each ranging from CNY500 million to CNY3 billion (USD73.3 million to USD440 million).

A full lifecycle performance management system will be formed for the fund, with a minimum annual return threshold of 4 percent, Liu noted, adding that the aim is to ensure that the money is effectively invested, well-managed, recoverable, and generates positive benefits.

Government-owned companies in Guangzhou established and managed over 500 funds as of the end of last year, of which nearly 200, with a combined scale of over CNY160 billion (USD23.4 billion), had the AI industry as one of their key investment directions, according to the Guangzhou State-Owned Assets Supervision and Administration Commission.

The AI industry-focused investment funds have been used in various segments of the supply chain, including AI chips, visual algorithms, smart driving, and embodied intelligence. CanSemi Technology, Cambricon Technologies, Unisoc Technologies, and multiple other hard-tech companies were among the investment targets.

Many relevant AI projects have already been set up in Guangzhou, providing strong support for the development of the local ecosystem.

To achieve the goal of becoming a "global hub for vertical AI models with significant influence," Guangzhou aims to establish 10 industry application common tech service platforms by 2030, according to a policy document released by the local government last month. The city plans to develop hundreds of market-competitive vertical AI models, create thousands of scenario application test zones, and attract or cultivate over 10,000 AI+ firms.

Editors: Tang Shihua, Martin Kadiev