U.S. investors have poured billions into China’s AI sector, report shows

WASHINGTON, Feb 1 (Reuters) – U.S. investors including Intel Corp (INTC.O) and Qualcomm Inc (QCOM.O ) accounted for 100% of Chinese artificial intelligence companies’ sales in 2015 to 2021, a report showed. Nearly one-fifth of the investment was made on Wednesday.

The document, released by CSET, a technology policy group at Georgetown University, comes as the Biden administration prepares to unveil new restrictions on U.S. funding of Chinese technology companies amid growing scrutiny of U.S. investments in artificial intelligence, quantum and semiconductors.

According to the report, 167 US investors participated in 401 transactions, accounting for about 17% of the investment in Chinese artificial intelligence companies during the same period.

The total investment in these deals was US$40.2 billion, accounting for 37% of the total funding raised by Chinese AI companies over the six-year period. It was unclear how much of the money came from U.S. companies, according to the report, which obtained information from data provider Crunchbase.

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Data shows that Qualcomm Ventures and Intel Capital have participated in 13 and 11 investments in Chinese artificial intelligence companies, respectively, surpassing GGV Capital, which has a total of 43 investments in this field, ahead of US companies.

The Biden administration is expected to unveil an executive order this year restricting some U.S. investment in the sensitive Chinese tech sector, as hawks in Washington accuse U.S. investors of diverting capital and valuable expertise to areas that could help boost Beijing’s military capabilities. Chinese technology companies.

U.S. investor GSR Ventures, along with China University of Science and Technology Xunfei Co Ltd (002230.SZ), reportedly invested in a Chinese artificial intelligence company after the voice recognition company was blacklisted for trading. Silicon Valley Bank and Wanxiang US Healthcare Investment Group, along with China’s SenseTime, invested in Chinese artificial intelligence companies before the facial recognition technology giant was blacklisted for the same deal.

Both companies were blacklisted in 2019 for alleged human rights abuses related to the crackdown on Uighur Muslims, effectively barring them from accepting U.S. technology exports.

Some of the largest investments include Goldman Sachs (GS.N) separate investment in artificial intelligence robotics firm 1KMXC, and investments by three U.S. venture capital firms in autonomous mobile robotics firm Geek+, the report showed.

According to CSET, only one Chinese AI company that has received funding from U.S. investors is involved in developing AI applications for military or public safety purposes.

Reporting by Alexandra Alper; Editing by Stephen Coates

Our Standards: The Thomson Reuters Trust Principles.

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