Shanghai State Investment Pilot Fund Focuses on AI Industry

The Shanghai State Investment Pilot Fund focuses on three major industrial directions: artificial intelligence, integrated circuits, and biomedicine. Wen Zhi, General Manager of Shanghai State Investment Pilot, stated that the criteria for measuring investment value have shifted from financial returns to industrial contribution, focusing on whether the investment solves 'chokepoint' problems. 'Shanghai State Investment Pilot,' fully named Shanghai State Investment Pilot Private Equity Fund Management Co., Ltd., was established in May 2024. It is a wholly-owned subsidiary of Shanghai State Investment Co., Ltd., a state-owned capital investment and operation platform in Shanghai. According to a report by The Paper on the 30th, Wen stated at the 'Shanghai State Investment Pilot Fund Industrial Ecology Conference' that the criteria for evaluating an investment have changed, with industrial value now outweighing financial arbitrage, focusing on 'whether the technology you invest in solves a chokepoint problem.' Wen mentioned that AI competition has entered a full-stack stage, and the winners of the future will not be champions in a single technical segment, but must be 'full-stack empires' capable of end-to-end integration from underlying computing power to upper-layer applications. If a company only acts as a replaceable module supplier, it will face pressure to be integrated or eliminated in the wave of vertical integration. Wen emphasized that the future private equity market will no longer be a 'red ocean' but will form a multi-layered, professional ecosystem where capital, talent, and high-quality projects will accelerate their concentration toward leading institutions and state-owned platforms. Dai Minmin, President of Shanghai State Investment Co., Ltd., stated that Shanghai is accelerating the construction of world-class high-end industrial clusters for the three major pilot industries, and the company will coordinate resources from the parent fund and its sub-funds to promote industrial development.