The United States is competing with China on many fronts, including technology, which the Chinese Communist Party uses to bolster its military. A new revelation shows that Chinese venture capital firms are being backed by U.S. investors for artificial intelligence (AI) startups, according to The Daily Caller.
These startups are reportedly intending to become the Chinese version of OpenAI, a new technology that has been released to the public that generates answers to almost any question posed. Sequoia Capital China, Matrix Partners China, Qiming Venture Partners, and Hillhouse Capital Management are some of the few firms backed by U.S. investors, according to The Information.
The investors total around 167 and are reportedly responsible for 401 transactions into the Chinese startups between 2015 and 2021. The transactions total $40.2 billion which has been funneled into the 251 Chinese AI companies.
A prevalent Chinese AI researcher, Yang Zhilin, has recently been in business with U.S. investors as he launches another company called Recurrent AI, whose research overlays OpenAI and Google.
China is in second place when it comes to the venture capital market. Though it is seeking to make developments in AI, ChatGPT is banned in the communist country, and other chatbots are severely regulated. The strategy of the CCP is to build up Chinese companies, even with capital from foreign countries, while prohibiting the growth or influence of foreign companies.
Authorities in the U.S. government are growing increasingly skeptical of the CCP’s tactics. In October, it was discovered that the CCP was stealing sensitive technological information for their military, according to the Daily Caller.
Sequoia Capital is also an investor in TikTok’s parent company ByteDance, which was acknowledged by CEO Shou Chew when he spoke to the House Energy and Commerce Committee last month.