Shenzhen Allocates $68 Million in Subsidies to Propel GPU-Based AI Model Training in 2024
In a bold move to establish itself as a global leader in artificial intelligence (AI), Shenzhen has unveiled a comprehensive subsidy plan totaling approximately $68 million USD for the upcoming year. This initiative, introduced by the Shenzhen Municipal Bureau of Industry and Information Technology, is a cornerstone of the newly published “Measures for Building Shenzhen as a Pioneer City in Artificial Intelligence.” These measures encompass a wide range of financial incentives and strategic initiatives aimed at accelerating AI research, development, and application across various industries.
What Happened
On December 18, 2024, the Shenzhen Municipal Bureau of Industry and Information Technology officially released the “Measures for Building Shenzhen as a Pioneer City in Artificial Intelligence”. This strategic document outlines multiple policies designed to foster the growth of Shenzhen’s AI ecosystem. Central to these measures is the introduction of “(GPU) Training Infra Coupons”, with an annual budget allocation of up to 5 billion yuan (approximately $68 million USD). These subsidies aim to reduce the costs associated with AI model research and development, particularly focusing on GPU-based model training.
The subsidy program targets a diverse group of beneficiaries, including established AI enterprises, startups, higher education institutions, and research organizations. Companies leasing intelligent computing power for large-scale model training are eligible to receive up to 50% of their service contract amounts, capped at 10 million yuan ($1.36 million USD). Startups benefit from an increased subsidy rate of 60%, allowing them to receive up to 6 million yuan ($816,000 USD). Additionally, the measures introduce “Model Coupons” and “Corpus Coupons” to further reduce AI application costs and promote data sharing and openness.
Beyond financial incentives, the measures emphasize the development of advanced computing infrastructure, such as the Pengcheng Cloud Brain III, and the creation of public technical service platforms. The policy framework also includes significant investments in foundational AI research, the establishment of a 10-billion yuan AI industry fund, and support for AI applications in strategic sectors like manufacturing, healthcare, education, and public services.
Key Takeaways
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Massive Financial Incentives: Shenzhen will distribute up to $68 million USD annually through “Training Infra Coupons” to lower AI model development and training costs.
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Enhanced Support for Startups: Initial AI startups can receive subsidies covering up to 60% of their service contract amounts, fostering innovation and entrepreneurship.
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Comprehensive AI Ecosystem Development: The introduction of “Model Coupons” and “Corpus Coupons” aims to reduce application costs and promote data sharing, respectively.
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Strategic Infrastructure Investments: Development of advanced computing resources like Pengcheng Cloud Brain III and public technical service platforms to support AI research and development.
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Focus on Key Industries: Emphasis on integrating AI into manufacturing, services, healthcare, education, and public governance to drive industrial modernization and efficiency.
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Investment in Foundational Research: Up to 3 billion yuan annually allocated for basic AI research, focusing on mathematics, core algorithms, and AI hardware technologies.
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Establishment of AI Industry Fund: A 10-billion yuan fund to support early-stage, small-scale, long-term, and hard technology AI projects, fostering a robust investment ecosystem.
Deep Analysis
Shenzhen’s latest subsidy initiative represents a strategic effort to position the city at the forefront of the global AI landscape. By allocating up to $68 million USD annually through “Training Infra Coupons,” Shenzhen significantly reduces the financial barriers for AI model training, particularly for GPU-intensive tasks. This financial support is crucial for both established AI companies and emerging startups, encouraging a diverse range of entities to innovate and contribute to the AI ecosystem.
The introduction of “Model Coupons” and “Corpus Coupons” further complements this strategy by addressing two critical aspects of AI development: application costs and data availability. “Model Coupons” lower the expenses associated with deploying AI models in various applications, making it more feasible for businesses to integrate AI technologies into their operations. Meanwhile, “Corpus Coupons” promote the open sharing and trading of high-quality data, which is essential for training robust AI models. This is particularly important in the context of the predicted scarcity of high-quality Chinese language data by 2028, as highlighted in the July 2023 “2024 Corpus Windstorm List and Excellent Case Report” by Eiou.
The emphasis on building advanced computing infrastructure, such as the Pengcheng Cloud Brain III, ensures that Shenzhen remains competitive by providing state-of-the-art resources necessary for cutting-edge AI research. Additionally, the creation of public technical service platforms and support for open-source communities fosters a collaborative environment, enabling seamless innovation and resource sharing among AI developers and researchers.
Investing up to 3 billion yuan annually in foundational AI research underscores Shenzhen’s commitment to long-term technological advancement. By focusing on core areas such as mathematical principles, core algorithms, and AI hardware technologies, Shenzhen aims to achieve technological self-sufficiency and reduce reliance on foreign AI technologies.
The establishment of a 10-billion yuan AI industry fund is a strategic move to create a sustainable investment ecosystem. This fund is designed to support early-stage and hard technology AI projects, ensuring that promising innovations receive the necessary financial backing to develop and scale. By adopting an investment strategy that prioritizes early, small, long-term, and hard technology investments, Shenzhen fosters a resilient and dynamic AI sector capable of sustained growth and innovation.
There have been rumors suggesting that the subsidy funds might be restricted to the use of domestic GPUs, such as those developed by Huawei. However, as of now, no official statements have been issued to confirm or clarify these speculations.
Did You Know?
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Data Scarcity Forecast: According to a July 2023 report by Eiou, high-quality Chinese language data for AI is expected to be depleted by 2028, making Shenzhen’s data-sharing initiatives crucial for sustained AI development.
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Advanced Computing Infrastructure: Pengcheng Cloud Brain III, one of China’s leading computing infrastructures, plays a pivotal role in providing affordable and high-performance computing resources to AI enterprises in Shenzhen.
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Broad Spectrum of Support: Shenzhen’s AI measures not only provide financial subsidies but also support the development of public technical service platforms, open-source communities, and AI-focused laboratories, fostering a comprehensive and collaborative AI ecosystem.
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AI in Everyday Life: The measures support the development of AI applications in everyday technologies such as AI smartphones, wearable devices, virtual reality equipment, smart home products, and embodied intelligent robots, integrating AI seamlessly into daily life.
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Global Ambition: Shenzhen’s AI strategy is not limited to local development; it aims to influence the global AI landscape by creating an environment that attracts international AI talent, enterprises, and investments, positioning the city as a global AI powerhouse.
Conclusion
Shenzhen’s ambitious subsidy plan, encompassing a total of $68 million USD in “Train Infra Coupons” and additional financial incentives through “Model Coupons” and “Corpus Coupons,” marks a significant leap forward in the city’s quest to become a global leader in artificial intelligence. By addressing critical challenges such as high development costs and data scarcity, and by fostering a supportive environment for both established companies and startups, Shenzhen is laying a robust foundation for sustained AI innovation and application.
The comprehensive approach outlined in the “Measures for Building Shenzhen as a Pioneer City in Artificial Intelligence” not only enhances the city’s industrial competitiveness but also contributes to the broader advancement of AI technology on a global scale. With strategic investments in advanced computing infrastructure, foundational research, and the establishment of a substantial AI industry fund, Shenzhen is well-positioned to attract a wave of AI enterprises, drive technological breakthroughs, and establish itself as a central node in the international AI network.
As these policies take effect, Shenzhen is set to experience significant growth in its AI sector, fostering an environment of innovation, collaboration, and technological excellence. This strategic initiative underscores Shenzhen’s commitment to leading the future of artificial intelligence, positioning the city as a beacon of innovation and a key player in the rapidly evolving global AI landscape.