Q1 AI funding exceeds 110 billion yuan, domestic large models see sharp growth

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Funding rates in the AI sector reached a new high in Q1 2026, with total capital exceeding 110 billion yuan. Nearly 600 funding rounds were recorded, marking an 185.4% increase from the previous year. Moonshot AI and LeapMind led the way, securing over 30 billion yuan in May alone. Embodied intelligence also attracted strong interest, with Vitatech and Lumina Robotics raising hundreds of millions within a week. Startups are now prioritizing R&D, GPU procurement, and talent acquisition. The AI Fear & Greed Index remains elevated, reflecting sustained investor confidence.
ME AI News: Recently, investment activity in the artificial intelligence startup sector has surged. In May, Chinese large model companies such as Moonshot AI and Jiepoin星辰 secured over RMB 30 billion in funding. Embodied AI has also attracted significant market attention, with companies like Weita Dongli and Luming Robotics securing hundreds of millions in funding within a single week. According to venture capital statistics, nearly 600 funding rounds occurred in the AI sector during the first quarter, totaling over RMB 110 billion—a year-over-year increase of 185.4%. After securing funding, many AI startups have directed their capital toward three key areas. First, research and development: leading large model companies are allocating billions in R&D spending for 2025, far exceeding their current revenue. Second, computing power: GPU purchases and cloud service rentals account for 30% to 50% of funding allocations. Third, attracting top global talent and teams. Increased R&D investment accelerates technological iteration: by 2026, Chinese large model companies have shortened their iteration cycles to under three months on average, while AI inference costs have dropped significantly, driving deeper commercialization. (CCTV Finance) (Jinshi) (Source: ODAILY)
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