On upper floors, services like computational power provision, data services, regulatory advice, and investment matchmaking stand at the ready. Below, an AI hardware development laboratory equips entrepreneurs with all essentials, enabling concepts to materialize into tangible products.

This innovative ecosystem, where entities collaborate seamlessly along the AI industrial chain, has taken shape in Shenzhen's Nanshan District. Dubbed the "Model Camp" AI Ecosystem Community, this flagship incubator in the Guangdong-Hong Kong-Macao Greater Bay Area focuses on large AI models.

Attendees to an event marking the opening of Model Camp discuss a Dobot Robots product on display. Photos courtesy of Nanshan's science, technology, and innovation bureau

Currently hosting an inaugural cohort of 11 AI startups, it aspires to incubate at minimum 100 AI firms and 1,000 AI applications on the back of a total investment of 20 million yuan (US$2.76 million) and a series of supportive policies, according to the Nanshan science, technology, and innovation bureau.

With this new incubator initiative, Nanshan, hosting nearly 40% of Shenzhen's AI firms, strives to propel newly minted companies to the vanguard of large language model development and application across diverse sectors — from consumer goods to culture, health care, and financial services.

Fostering AI startups

Diverging from conventional incubators or industrial parks, Model Camp positions itself as a hub leveraging Shenzhen's, especially Nanshan's, robust AI industry to provide fundamental infrastructure and support for resident firms. To better serve startups, seven public service platforms have been established, respectively focusing on computing power, linguistic data, compliance, open-source environments, hardware innovation, creative settings, and financial connectivity.

A humanoid robot from UBTech picks up an orange handed to it by a human at the opening of Model Camp in Nanshan District earlier this month.

The initial phase of Model Camp, spanning approximately 20,000 square meters at the Cloud Technology Building and the Digital China International Innovation Center, benefits from a strategic geographic location, in proximity to existing institutions like Pengcheng Laboratory, Shenzhen Innox, Intel's Greater Bay Area Innovation Center, OSCHINA (Open Source China), and various universities.

Planned subsequent phases will extend into Nanshan Smart City, expanding the total area to an ultimate 100,000 square meters. Resident firms are granted two years of rent-free tenure along with an annual computing power subsidy up to 1 million yuan, along with additional policy support.

Unlike conventional industrial parks, which may accommodate a mix of sectors, Model Camp is exclusively devoted to AI startups, aiming to foster a dynamic AI ecosystem within a shared location. Its array of services and advantageous policies, including discounted computing power expenses, compliance guidance, and premium linguistic data, are poised to reduce operational costs for businesses while activate the ecosystem.

Robotic arms insert a straw into a carton of drink at the booth of Dobot Robots.

Addressing the challenges AI startups face in acquiring costly computing resources, Model Camp has established a computing power supply platform in collaboration with institutions like BoDa Data and the Shenzhen-Hong Kong Artificial Intelligence Computing Power Center in Qianhai, streamlining resource accessibility for resident firms. Moreover, a linguistic data service platform has been developed to meet firms' requirements for public databases and data sharing.

To support startups financially, Model Camp will leverage the Nanshan District guiding fund and team up with renowned AI investment institutions such as Innoangel Fund, ZhenFund, and Yinxinggu Capital to establish a financing and networking platform.

Leveraging strength in AI

In the 1950s, the Santa Clara Valley in the San Francisco Bay Area was merely covered in orchards before it became a beacon of technological innovation known as Silicon Valley. In the ensuing decades, waves of technological breakthroughs propelled by innovations such as semiconductors, personal computers, and the internet prompted a persistent query: What draws the relentless tide of technological progress to Silicon Valley?

As stated by Pietro Sgarufi, author of "A History of Silicon Valley," the answer lies in its culture — an ethos of unorthodox thinking and supporting audacious endeavors. Nanshan in Shenzhen, China's technological hub, is renowned for a similar disposition. Boasting a comprehensive industrial chain, a focus on practical applications, and robust research capabilities, Nanshan has witnessed a robust growth in AI industry. By the end of 2023, the district was home to 891 AI companies, accounting for nearly 40% of Shenzhen's total.

People attending an event to launch Model Camp work on a laptop at a UBTECH booth.

Moreover, Nanshan hosts three provincial-level AI hubs — Shenzhen Bay Eco-Tech Park, GemdaleViseen Software Park, and Nanshan iPark — collectively encompassing almost 2,000 companies holding AI patents and cultivating an AI ecosystem spanning foundational, technological, and application tiers.

Nanshan's AI landscape is exceptionally diverse, encompassing globally competitive giants like Tencent, ZTE, and UBTech Robotics alongside a constellation of emerging stars.

Notably, the district spearheads large model and vertical model development, with 49 Nanshan-based companies collectively raising over 3.2 billion yuan in 2023, 10 of which secured billion-yuan investments each.

An employee operates a Unitree humanoid robot at the Model Camp event earlier this month.

In a bid to accelerate high-caliber AI development, Nanshan issued an action plan last year to accelerate high-quality AI development and application, aiming to foster connections between scenario demands and AI firms.

According to the plan, Nanshan will select projects and solutions through methods such as open bidding and global competitions.

Alongside Model Camp, the initial set of projects has been unveiled for public tendering. Firms or teams successfully selected through the open bidding process will receive support of up to 8 million yuan each.

Resident firms at Model Camp are also encouraged to introduce innovative and practical AI solutions in areas including smart transportation, intelligent health care, advanced manufacturing, and digital entertainment.