Silicon Valley Becomes Battleground for Chinese AI Ambitions and Talent Acquisition, Fundings: Black Cipher Security, Elroy Air, Airbound
20 November 2024 - A Weekly Publication by New North Ventures
Chinese Tech Groups Build AI Teams in Silicon Valley
Chinese technology giants Alibaba, ByteDance, and Meituan are intensifying their efforts to recruit top AI talent in Silicon Valley despite the challenges posed by U.S. restrictions on high-end Nvidia AI chip exports. These companies have been expanding their U.S. offices and targeting engineers and researchers from leading American tech firms, including OpenAI.
Alibaba is forming a new AI team in Sunnyvale, focusing on its AI-powered search engine Accio, and plans to spin it off into a separate startup. Similarly, ByteDance is leveraging its established California presence to work on AI integration for TikTok and its Doubao large language model, while Meituan has launched a new generative AI team under the leadership of a co-founder.
This recruitment push underscores the increasing competition in generative AI, as well as the complex interplay between innovation and geopolitics. Smaller Chinese startups, like Moonshot AI, have also set up operations in the U.S., further contributing to this talent race. Moonshot, co-founded by a former Google Brain researcher, is developing multimodal AI models and operates the chatbot Kimi, which has gained popularity in China.
Meanwhile, companies like Baidu, which once had a strong AI research presence in Silicon Valley, have scaled back due to internal issues and strained U.S.-China relations. These efforts highlight the strategic importance of Silicon Valley’s AI expertise to Chinese firms, even amid regulatory scrutiny.
Panel Report on China’s Tech Developments Calls for U.S. Action on Space and AI
The U.S.-China Economic and Security Review Commission’s annual report highlights China’s rapid advancements in artificial intelligence, quantum computing, biotechnology, and space technologies, driven by state-led investments and “techno-nationalist” strategies. The report emphasizes the integration of these technologies into China’s economic and military strategies, with particular focus on the People’s Liberation Army (PLA).
Notable advancements include the PLA's expansion of space-based surveillance, with a significant increase in satellites providing near-continuous coverage of the Indo-Pacific. The report raises alarm over China's counter-space technologies, such as directed energy weapons and anti-satellite systems, which could threaten U.S. satellite networks and military operations.
Among the report’s 32 recommendations is a call for a “Manhattan Project-like program” to develop artificial general intelligence (AGI), a transformative AI capable of human-like reasoning, to ensure the U.S. remains competitive. The commission urges Congress to prioritize AGI development and grant AI programs "DX Rating" status for expedited funding and resources. It also warns against China’s dual-use AI investments, which span both civilian and military applications and could tilt the global power balance.
The report underscores the PLA’s ability to disrupt U.S. military operations and cautions against vulnerabilities posed by commercial satellite partnerships. To counter these threats, the commission advocates for stronger measures to safeguard U.S. space assets and maintain technological superiority.
Founded: 2013
Key People: Managing Partner Larry Hershman
Elevator Pitch: Information technology and cybersecurity services intended to serve private and public clients.
Funding: The company was acquired by UTRS InfoSec, a subsidiary of Universal Technical Resource Services, for an undisclosed amount on November 19, 2024.
Founded: 2016
Key People: CEO David Merrill
Elevator Pitch: Autonomous vertical-takeoff-and-landing aircraft designed to feature rotor-based vertical takeoff and landing (VTOL) to wing-based cruise flight.
Funding: The company raised $6.64 million of venture funding from undisclosed investors on November 15, 2024.
Key People: CEO Naman Pushp
Founded: 2020
Elevator Pitch: Unmanned aerial vehicles intended to provide lightweight drones for last-mile delivery.
Funding: The company raised $1.7 million of seed funding in a deal led by Lightspeed India Partners on November 14, 2024.
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