Shenzhen Launches $1B AI Hardware Fund to Fuel Startup Growth
China's tech powerhouse Shenzhen is doubling down on artificial intelligence hardware with a massive new investment initiative. At the Global Artificial Intelligence Terminal Expo 2025, city officials announced the creation of twin funds totaling 7 billion RMB (approximately $1 billion USD) specifically targeting robotics and intelligent device startups.
The funding package consists of a 5 billion RMB main fund supplemented by a 2 billion RMB secondary fund. This financial commitment underscores Shenzhen's ambition to cement its position as the nation's premier hub for hardware innovation. The expo itself served as a showcase for over 300 exhibitors demonstrating China's latest advancements in AI technology.
Among the standout reveals was Huawei's debut of its first foldable tablet running on the proprietary HarmonyOS. The launch marks a significant milestone for the company following its separation from Google and Microsoft services. Pre-orders for the device opened this week, with shipments scheduled to begin June 6.
Robotics took center stage with multiple breakthroughs. UBTech Robotics introduced "Meng UU," a pocket-sized AI companion capable of natural interaction. Meanwhile, Shenzhen-based EngineAI expanded its portfolio beyond bipedal robots by unveiling its inaugural quadruped model.
The event also saw the formation of the Shenzhen AI Glasses Industry Alliance, reflecting growing excitement about augmented reality eyewear as the next major consumer tech category. This development comes alongside Google's newly announced partnership with Chinese AR specialist XReal. TCL's RayNeo brand demonstrated its upcoming X3Pro glasses while maintaining dominance in China's domestic AR market.
In the expo's special exhibition zone, Huaqiangbei Electronics Market—often called China's Silicon Valley—featured prominently. Virtual reality firm Authentic Horizon presented its Vision SE headset at an aggressive 1999 RMB price point. Though resembling Apple's Vision Pro in design, the device currently relies on traditional controllers rather than gesture recognition technology.
With this combination of financial backing and technological innovation, Shenzhen appears poised to challenge global leaders in AI hardware development. The city's unique ecosystem—combining manufacturing prowess with startup culture—gives it distinct advantages in bringing next-generation devices from prototype to production.
Key Points
- Shenzhen commits 7 billion RMB ($1B) across two funds targeting AI hardware startups
- Huawei unveils HarmonyOS-powered foldable tablet amid ongoing US tech restrictions
- Robotics innovations include UBTech's interactive "Meng UU" and EngineAI's quadruped robot
- New industry alliance forms around AR glasses as next-gen consumer tech platform
- Local manufacturers demonstrate competitive VR/AR products at accessible price points
