China AI startups draw early funding from U.S. investors: report

VC money brings name recognition and networking, but security concerns abound

20230202N AI China

American investors funneled over $40 billion into Chinese AI companies between 2015 and 2021. (CFOTO/Future Publishing via Getty Images)

JACK STONE TRUITT, Nikkei staff writer

NEW YORK -- More than 90% of outbound U.S. investment into Chinese artificial intelligence companies in recent years has occurred in the venture capital stage, with investors providing valuable intangibles like name recognition and networking opportunities, a new policy brief from Georgetown University has found.

The report, released this week by Georgetown's Center for Security and Emerging Technology, comes amid heightened concern in Washington over security risks posed by certain investment into Chinese companies, especially into emerging technologies like AI.

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