Hangzhou is doubling down on tech – minus the viral hype
A year ago, a Unitree robot kickboxing could light up social media. When DeepSeek released its latest open-source artificial intelligence (AI) model, developers around the world rushed to test it. This year, however, Hangzhou’s latest technology bets have barely made a ripple. The city’s “New Eight Steeds” – eight deep-tech companies in fields ranging from smart glasses and inference graphic…
A year ago, a Unitree robot kickboxing went viral on social media. DeepSeek's open-source AI model also sparked interest worldwide. This year, Hangzhou's technology bets, known as the "New Eight Steeds," have not made much of a splash. The city's "Six Little Dragons" have moved on, and the financial markets have questioned Hangzhou's technology marketing approach.
Most "steeds" operate in the industrial sector, serving businesses and institutions rather than consumers, which has made it difficult to capture public attention. The scepticism is understandable, as some mock the city's eagerness to turn tech companies into a branding exercise, with limited profitability from the "dragons." Unitree's market value soared to 444.9 billion yuan (US$66.4 billion) after its August listing before plummeting by more than half by the end of September.
Manycore Tech, another member, saw shares drop from a HK$48.50 high (US$6.20) to around HK$7. This setback has complicated Hangzhou's technology narrative. While the "dragons" were easy to understand and share, the new "steeds" focus on infrastructure that is less visible and harder to explain in short videos. Their value depends on the industrial ecosystem built around them, making it challenging to transition from policy documents to actual orders.
Hangzhou aims to become China's leading city for AI innovation by 2025, leveraging legislation and state funds to support deep-tech investments. The challenge lies in building companies that are indispensable to the AI economy, as Hangzhou faces competition from Beijing, Shenzhen, and Shanghai. The city's potential edge lies in combining open-source technology, hardware entrepreneurship, and a flexible regulatory environment.
Alibaba's involvement could present both opportunities and competition for Hangzhou's chip and computing companies. Ultimately, Hangzhou's challenge is to build companies that are essential to the AI infrastructure, rather than relying on viral videos or market memes for success.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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