**US Investors Explore China’s AI Landscape Amid Renewed Interest**
In recent months, Joshua Kushner’s Thrive Capital and the investment firm Capital Group have made trips to China to gain insights into its burgeoning AI industry. This comes as a response to the impressive advancements made by DeepSeek, which have captured the attention of Silicon Valley and prompted a resurgence of interest among U.S. investors in the Chinese market.
Sources familiar with the visits indicated that senior representatives from Thrive engaged with various companies and investment funds in China to discuss developments in artificial intelligence. Notably, Kushner did not accompany the delegation, as per one anonymous source discussing the private meetings. Concurrently, Capital Group, one of the largest investment firms globally, sent its own senior executives to China to explore the local AI ecosystem.
These visits coincided with Benchmark Capital, a backer of Uber Technologies Inc., leading an investment in Butterfly Effect, the company behind the emerging AI service Manus, which boasts founders of Chinese origin. This outreach highlights a cautious yet growing interest in the previously overlooked Chinese AI sector, especially following DeepSeek’s demonstration that a domestic firm can create a platform comparable to industry leaders like OpenAI and Anthropic.
While the extent of discussions and potential investments remains uncertain, a representative from Thrive stated that the firm currently has no investments in China and does not plan to pursue any. A spokesperson for Capital Group declined to comment on the matter.
Kushner has previously expressed skepticism regarding the U.S. tech industry’s enthusiasm for DeepSeek. At a recent conference in Washington, D.C., he emphasized the importance of developing artificial intelligence that aligns with American democratic values, warning of significant consequences for the Western world if this is not achieved.
Any potential investment in Chinese AI startups may face scrutiny from U.S. policymakers concerned about American capital supporting China’s technological advancements, especially under the current administration. Benchmark Capital has already faced criticism on social media for its investment in Manus, despite the startup primarily operating outside of China. Reports indicate that the U.S. Treasury Department is now inquiring about the Manus deal.
Manus, co-founded by Xiao Hong, Cheung Tao, and Peak Ji Yichao, has reportedly raised over $10 million in previous funding rounds, with contributions from Tencent Holdings Ltd. and notable venture capital firms such as ZhenFund and HSG, formerly known as Sequoia China.
As the landscape of AI continues to evolve, the interactions between U.S. investors and Chinese firms may shape the future of technology development on both sides of the Pacific.
**FAQ**
**Q: Why are U.S. investors interested in China’s AI industry?**
A: U.S. investors are exploring China’s AI industry due to significant advancements made by companies like DeepSeek, which have demonstrated that domestic firms can compete with leading global AI platforms.
