Ant Group, the fintech affiliate of Alibaba Group Holding, and the Shanghai municipal government have formed a strategic partnership to collaborate on blockchain and artificial intelligence (AI) innovation. In a statement published on Wednesday, the two parties announced their intention to “actively participate in building an artificial intelligence industry ecosystem and blockchain innovation platform in Shanghai”. This partnership solidifies the commitment by Ant Group to support the state’s technology priorities and aligns with the city’s plans to establish “five centres” for economy, finance, trade, shipping, and scientific and technological innovation.
The partnership signing ceremony was attended by Shanghai Mayor Gong Zheng and Eric Jing Xiandong, chairman and chief executive at Ant Group. Mayor Gong highlighted Shanghai as an open and creative city that provides ample opportunities for companies to develop. Ant Group plans to increase its research and development investment to contribute to the economic and societal growth of Shanghai and enhance local enterprises' participation in global trade.
Ant Group’s decision to deepen their collaboration with the Shanghai government comes after facing regulatory demands and undergoing a reorganization and ownership change. The fintech giant called off its mega initial public offering in Shanghai and Hong Kong in late 2020. The partnership serves as a testament to the company’s commitment to fulfilling regulatory requirements and solidifying its presence in the market.
This strategic alliance reflects the broader trend of Big Tech firms in China supporting the state’s technology goals. Companies like Ant Group understand the importance of aligning with government initiatives to ensure long-term success and maintain a positive relationship with regulators.
Beyond Ant Group’s involvement, other Alibaba businesses are also increasing their investments in Shanghai. The Damo Academy, Alibaba’s in-house research facility, recently established a new company in Shanghai. With a registered capital of 10 million yuan (US$1.4 million), Damo Academy (Shanghai) Technology Co focuses on integrated circuit design, as well as AI software and algorithm development.
By nurturing such partnerships with corporate entities, the Shanghai municipal government aims to deepen collaboration and foster an environment conducive to business growth. The city sees these alliances as an opportunity to leverage the expertise and resources of private enterprises and further position itself as a hub for economic, financial, and technological innovation.
As Shanghai continues to attract investments and develop its technology ecosystem, the strategic partnership between Ant Group and the Shanghai government underscores the city’s commitment to embracing AI and blockchain innovation. This collaboration illustrates the role that Big Tech can play in advancing technological development and supporting the state’s priorities. With Ant Group’s increased research and development investment and active participation in building the ecosystem, Shanghai has positioned itself as a dynamic and attractive destination for businesses and entrepreneurs seeking to be at the forefront of technological advancement.
In the words of Eric Jing Xiandong, chairman and CEO of Ant Group, “We are excited to partner with the Shanghai government to contribute to the city’s economic and societal growth. We believe that through strong collaboration and shared vision, we can build a thriving AI industry ecosystem and a robust blockchain innovation platform in Shanghai.” This alliance serves as a testament to the potential of collaboration between private enterprises and governments in driving digital transformation and technological progress.
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