Global Investors Bet on Chinese Artificial Intelligence Companies
A notable strategic shift is reshaping the portfolios of major international funds. Chinese artificial intelligence attracts fresh capital, while caution grows over the overheated US market. This movement responds to the assessment that US technological leadership is no longer absolute and seeks long-term growth in more attractive valuations. 🧠
China Closes the Technological Gap at Great Speed
Analysts and fund managers agree that the gap in AI between China and the United States is closing rapidly. Although they acknowledge that the US maintains leadership in cutting-edge innovation, the pace at which China advances alters the global competitive landscape. This perception underpins the capital flows toward Asian companies, which are now seen with a higher revaluation potential and less exposed to sharp price corrections.
Key factors driving this trend:- The technological advantage of the United States is tangibly diminishing, according to fund managers' reports.
- There is growing concern on Wall Street about a possible speculative bubble in the US AI sector.
- Investors seek to diversify their portfolios to mitigate risks and capture growth in different regions.
It seems that in the AI game, some major funds prefer not to put all their chips on the same table, especially if they believe that table might be a bit shaky.
Ruffer's Strategy: A Paradigmatic Case
The British investment manager Ruffer exemplifies this change of course. Its decision to limit exposure to major US tech companies and increase its stake in the Chinese Alibaba is not an isolated case, but part of a calculated strategy. The firm assesses that the risk in the US AI market is high and seeks opportunities where growth is not fully priced into stock prices.
Advantages of investing in an integrated ecosystem like Alibaba:- The company controls a division that designs chips specifically for AI applications, a crucial link in the value chain.
- It owns and develops its own large language model, called Qwen, competing in a key field.
- It aggressively invests in expanding its cloud infrastructure, the necessary foundation for processing and deploying AI.
A Global Rebalancing of Venture Capital
This trend signals a strategic rebalancing of technological venture capital worldwide. Investing in a company that vertically integrates from hardware (chips) to software (language models) and the platform (cloud) allows funds to cover multiple fronts of the AI ecosystem with a single operation. The ultimate goal is to diversify geographic and technological risk, betting on players that can close the gap and offer solid returns in the future. 📈