China has launched an AI-focused investment firm with a registered capital of CNY60.06bn (USD8.626bn) funded by its third state chip fund and a Shanghai state-owned asset manager, according to Qichacha. Approved on January 17, the National Artificial Intelligence Industry Investment Fund aims to support equity investment, management, and asset management in the AI sector. The firm is backed by the third phase of the China Integrated Circuit Industry Investment Fund, or Big Fund, which was set up in May 2023 with a capital of CNY344bn to strengthen China’s semiconductor industry amid Sino-U.S. tensions. China’s AI stocks rallied, with Baidu rising 2.7%, Tencent up 2.6%, and Alibaba climbing 4.7%, outperforming the broader market.