BUSINESS

Lenovo Capital Backs AI Agents in Quest for China’s Next Tech Titans

Published: Jul. 23, 2025 4:14 a.m. GMT+8

00:00

00:00/00:00

Listen to this article 1x

A leading Chinese venture capitalist is signaling a strategic shift in the country’s fast-evolving artificial intelligence (AI) race, as investment moves from building foundational AI models to deploying real-world applications.

Song Chunyu, chief investment officer of Lenovo Capital and Incubator Group — the venture arm of PC giant Lenovo Group — said the company is now prioritizing AI agents, or software that can automate complex tasks, which he believes hold the key to creating the next generation of tech giants.

You've accessed an article available only to subscribers

Subscribe today for just $.99.

VIEW OPTIONS

Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.

Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.

Share this article

Open WeChat and scan the QR code

DIGEST HUB

Digest Hub

Back

Explore the story in 30 seconds

Chinese VC Song Chunyu of Lenovo Capital is shifting focus from foundational AI models to real-world AI applications, especially AI agents, dedicating 80% of his efforts to this area.
The firm is targeting efficient inference chips and embodied intelligence (AI-powered robotics), expecting consolidation among China's dozen-plus AI chipmakers due to U.S. export controls and market forces.
The reopening of China’s STAR Market boosts exit opportunities for tech firms, likely accelerating M&A and consolidation in the AI sector.

AI generated, for reference only

Who’s Who

Lenovo Group: Lenovo Group's venture arm, Lenovo Capital and Incubator Group, is shifting its AI investment strategy. Song Chunyu, their chief investment officer, is prioritizing AI agents over foundational models, believing they offer better short-term commercial returns. This reflects broader changes in China's tech sector amid U.S. export restrictions. Lenovo Capital also invests in AI chips and embodied intelligence, anticipating market consolidation and opportunities for domestic substitution.

ByteDance: ByteDance is referenced as a benchmark for future tech giants. Song Chunyu, Chief Investment Officer of Lenovo Capital, believes that promising AI agent startups could become the next ByteDance, indicating its significant success and market impact.

Mobvoi: This article does not mention Mobvoi (Chinese:出门问问).

Zhipu AI: Zhipu AI is a prominent elite startup in China's AI sector, specifically focused on foundational models. The market for these models has largely consolidated around a few key players, including Zhipu AI.

DeepSeek: DeepSeek is a prominent Chinese AI startup that *Lenovo Capital* sought to invest in, but the offer was declined. DeepSeek is recognized as one of the elite startups alongside internet giants in the foundational model market.

Cambricon: Cambricon, a Chinese AI chipmaker, is a Lenovo Capital portfolio company. It has achieved scale and profitability in the first quarter of 2025, benefiting from China's "domestic substitution" push due to U.S. export controls.

Nvidia Corp.: Nvidia Corp. is mentioned in the context of its $4 trillion valuation, which highlights market demand for AI chips. The article suggests that while Nvidia dominates power-intensive training chips, there's an opportunity for newcomers in cost-effective inference chips.

AI generated, for reference only