Nestled on the west coast of the Pacific Ocean, the Shanghai Foundation Model Innovation Center (SMC) has rapidly become a vibrant hub for generative AI. Since opening in September 2023, nearly 400 AI enterprises have set up shop in Xuhui District, sparking a dynamic cluster of talent, technology and capital.
A full-stack ecosystem for breakthroughs
SMC offers a one-stop platform connecting research and real-world applications. From hybrid computing chips to general-purpose GPUs, it showcases a fully controllable computing stack designed to rival global benchmarks. In 2024, the center launched the Chinese mainland’s first "AI computing power supermarket," giving developers on-demand access to diverse resources.
Policy innovation fuels growth
Shanghai’s government has supercharged SMC’s rise. A January 2024 plan introduced five public service platforms to streamline AI development. Combined with a challenge-and-grant model—where industry leaders issue R&D challenges for startups—this approach has driven breakthroughs in healthcare, autonomous driving and beyond.
More than 90% of founding teams come from top-tier tech firms or elite universities, and 80% focus on specialized AI models. Today, over 255 startups and 34 certified large models call SMC home. With plans to expand its nuclear explosion point strategy—amplifying AI’s impact across industries—Shanghai offers a blueprint for cities worldwide aiming to cultivate next-generation tech ecosystems.
“This isn’t just about building models. It’s about building the future,” says one developer based at SMC.
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China's AI ambition takes shape in Shanghai's large model incubator
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