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The New Third Rail in Silicon Valley: Investing in Chinese AI

BloombergMonday, July 14, 2025 at 8:00:21 PM
NeutralTechnologyTech Investment
The New Third Rail in Silicon Valley: Investing in Chinese AI
Silicon Valley's latest hot-button issue? Pouring money into Chinese AI firms. Benchmark Capital faced unexpected backlash after leading a $75 million investment in startup Manus, with rival investors raising eyebrows over the geopolitical and competitive implications. It’s a sign of how tense the tech world’s relationship with China has become—even deals that once seemed routine are now sparking drama.
Editor’s Note: This isn’t just about money—it’s about Silicon Valley’s awkward dance with China. As tensions rise between the U.S. and China over tech dominance, investors are getting flak for backing Chinese AI, which some see as funding a rival. The backlash hints at a bigger shift: the line between business and politics in tech is getting blurrier by the day.
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