Chinese VC Capital Accelerates Into Physical AI, World Models; Physical AI Attracts $133.6B Funding

According to Odaily, Chinese venture capital institutions are rapidly redirecting investment toward Physical AI and World Models. Current funding distribution across major AI sectors shows: Large Language Models at $235.6 billion, AI Infrastructure and Technology at $157.4 billion, Physical AI at $133.6 billion, AIGC Applications at $87.9 billion, and Autonomous Driving and other emerging segments at $38.2 billion. The shift reflects declining capital for early-stage foundational model development, with institutions concentrating resources on established leading companies and World Models technology.
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