Shanghai has established three major industry Fund of Funds worth CNY100 billion (USD14.1 billion), including a dedicated CNY22.5 billion (USD3.2 billion) AI-focused fund to accelerate emerging industries.

The AI town will span 2 square kilometers and include industrial, commercial, and residential spaces designed to foster an integrated ecosystem for research, application, and living.

The new fund, created by GL Ventures and Pudong Venture Capital, aims to support broad AI innovation, application development, and the cultivation of AI unicorns.

It will collaborate with Pudong Venture Capital's AI Seed Fund to support startups, with the seed fund focusing on early-stage AI investments.

China's Hillhouse Capital's venture arm and Pudong Venture Capital have jointly launched a USD281.4 million fund to develop an AI town in Shanghai's Zhangjiang Science City.

The Zhangjiang AI Innovation Town aims to initially host 500 AI companies, with plans to develop 3-5 global-leading firms by 2027 and expand to 1,000 companies by 2030, establishing itself as a major international AI hub.

Pudong's AI sector already exceeds CNY160 billion (USD22.5 billion), making up nearly 40% of Shanghai's total AI industry and attracting over 600 leading firms across various sectors.