Kai-Fu Lee's 01.AI secures state-backed funding from Hangzhou
Artificial intelligence firm 01.AI has received hundreds of millions of yuan in funding from state-backed investors in Hangzhou to support its shift toward enterprise-focused software.
01.AI, the artificial intelligence firm established by venture capitalist Kai-Fu Lee, has entered into an agreement to receive several hundred million yuan in funding from state-affiliated entities in Hangzhou’s Linping district. The deal, finalized on October 28, requires the company to relocate its headquarters to the Linping area.
The capital injection marks a transition for 01.AI, which is pivoting away from consumer-facing applications to prioritize enterprise-grade AI systems. As part of the expansion, the company intends to develop a specialized hub in Hangzhou aimed at assisting local businesses with the implementation of generative AI technologies.
This strategic shift follows the termination of the company's public model platform and API services in September. Currently, the company focuses on customizing open-weight models—such as DeepSeek and Qwen—for corporate clients. According to company disclosures, a significant portion of its revenue is currently generated from international markets outside of China.