Behind in the AI race, Shanghai releases 120 million euros in subsidies
The Shanghai municipality has unveiled a 1 billion yuan subsidy plan to facilitate the adoption of artificial intelligence (AI) models by its companies. The megacity aims to catch up with smaller but more dynamic cities.
When it comes to AI, competition between Chinese cities is fierce. The latest example, noted by the Zhi Dongxi website , which specializes in information on this field, is that the Shanghai municipality unveiled on Tuesday, July 29, a vast subsidy program for AI industries worth 1 billion yuan, or 120 million euros. This plan is primarily not about creating new gems in the sector, but rather about "facilitating the adoption of AI solutions by local companies."
In detail, a little more than half of the envelope is to be used to subsidize computing power, a third will be earmarked for discounts on third-party AI models, and the remaining 100 million (12 million euros) yuan will be used to help companies obtain databases to train new models.
“The plan is designed to directly reduce costs for businesses – a strategy likely to produce tangible results in boosting Shanghai’s local AI industry,” Pan Helin, an expert at China’s Ministry of Industry and Information Technology, was quoted as saying by the South China Morning Post .
Shanghai has long held the status of the spearhead of Chinese-style capitalism, with its financial center and its openness to the world. But Pan Helin tempers this:
“The city's high operating costs—from office rent to living expenses—may push new AI startups to cheaper cities, such as Hangzhou.”
Neighboring Shanghai in eastern China, Hangzhou has established itself as the new El Dorado of Chinese tech, contributing to the rise of what are called its “six little dragons” – a group of young Chinese companies, led by the flagship of AI, DeepSeek (Shendu Qiusuo, in Mandarin).
Shanghai is not the first Chinese city to offer a golden bridge of subsidies to attract tech companies: neighboring Hong Kong, in southeast China, the cities of Shenzhen and Zhuhai unveiled subsidy plans in June to the tune of 860 million euros for the former, and 60 million for the latter.
Similarly, Beijing and Chengdu, the capital of Sichuan, further west, have also launched their AI subsidy plans. The race is only just beginning.
Courrier International
