China’s AI start-up funding triples in first quarter amid bets on LLMs, robotics

Funding for China’s artificial-intelligence-related start-ups jumped nearly threefold year on year in the first quarter, as investors poured capital into large language models (LLMs) and embodied AI amid growing optimism over the country’s technology ecosystem.

AI-related start-ups secured more than 110 billion yuan (US$16.2 billion) in the first three months of the year, representing a 185 per cent surge from the same period last year, according to data released on Thursday by Beijing-based venture capital and private equity research firm Zero2IPO Research.

The AI boom has helped lift China’s broader private equity and venture capital market. Total investment activity reached 2,568 deals worth 234.4 billion yuan in the March quarter, representing year-on-year increases of nearly 5 per cent in deal volume and over 15 per cent in value, the report showed.

Several of the quarter’s largest fundraising rounds were completed by leading generative AI developers, including Moonshot AI, StepFun, Z.ai (formerly Zhipu AI) and MiniMax, as well as embodied AI firm Galaxea AI. The blockbuster rounds reflect intense investor appetite for automation and advanced computing infrastructure.

Zero2IPO also reported a sharp rebound in foreign-currency investments. The number of foreign-currency deals more than doubled year on year to 210, while disclosed investment value skyrocketed over 495 per cent to 67.3 billion yuan, with capital primarily targeting AI and consumer companies. Cornerstone investments in Hong Kong initial public offerings remained active, according to the report.

Moonshot AI founder Yang Zhilin delivers a speech at the Zhongguancun forum in Beijing, March 25, 2026. Photo: Reuters

In contrast, yuan-denominated investments fell nearly 13 per cent to 167.1 billion yuan.

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