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Inside China, the AI funding frenzy is just heating up

The Australian Financial Review (AFR) •
October 24, 2026 • 01:00 AM
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Investors are scrambling for a stake in China’s AI champion DeepSeek, which raised $20 billion. But the cost of competing with Silicon Valley is soaring.

Inside China, the AI funding frenzy is just heating up

Tokyo | In China’s technology hub Hangzhou, investors are quite literally pouring into the city, hoping for a slice of home-grown AI champion DeepSeek.

Around the world, the AI trade is wobbling amid investor concerns over the rapid pace of debt-fuelled spending on the cutting-edge technology. US labs such as OpenAI and Anthropic are pushing to raise eye-watering levels of funding before going public.

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