Serenity: Chinese VC Funds Accelerate Flow into Physical AI and World Models

On July 4, Serenity posted on platform X, indicating that the current funding trends in the Chinese private VC market show a significant influx of institutions into the fields related to Physical AI and World Models. The distribution of funds is approximately as follows: Large Models/LLM about $23.56 billion, AI Infrastructure and Technology Layer about $15.74 billion, Embodied Intelligence/Physical AI about $13.36 billion, and AIGC Applications about $8.79 billion. Serenity added that the early financing cycle for pure foundational models may have largely ended, with capital increasingly concentrated on established leading companies and the direction of World Models. This trend is also expected to emerge in the U.S., potentially further concentrating on leading companies such as Anthropic and OpenAI. Currently, AI investments continue to flow into infrastructure and semiconductor supply chains, while capital is rapidly rotating towards Physical AI and Embodied Intelligence.
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