### The Shift in Chinese AI Startups

In the wake of **DeepSeek's remarkable success**, leading **Chinese AI startups** are undergoing significant transformations in their business strategies. The competitive landscape is evolving rapidly, prompting these companies to rethink their approaches to stay ahead.

### Rethinking Strategies

The **intense pressure to innovate** has led top groups in China to reassess their business models. This shift is not just about adopting new technologies; it involves a comprehensive overhaul of existing frameworks to enhance their market presence and operational efficiency.

### The Competitive Edge

As the race for technological supremacy heats up, startups are focusing on **enhancing their AI capabilities** to provide unique solutions that meet the diverse needs of consumers and businesses alike. This pivot aims to foster **sustainable growth** and maintain a competitive edge in the global market.

### Conclusion

The AI sector in China is at a pivotal point, where adaptability and innovation are crucial for survival. As startups navigate this landscape, their ability to pivot and embrace change will determine their future success in a world increasingly driven by technology.

The country’s top groups are re-evaluating their strategies as they race to remain competitive

How Chinese AI Startups are Revolutionizing Their Business Models Post DeepSeek Success

### A New Era for AI in San Jose

A **new artificial intelligence center** has officially launched in **downtown San Jose**, marking a significant step towards establishing the city as a hub for tech innovation. The **Plug and Play AI Center for Excellence** will be located in a prominent tower at the intersection of **First Street and Santa Clara Street**.

![AI Center Launch](https://i0.wp.com/www.mercurynews.com/wp-content/uploads/2025/04/SJM-L-SJDTAI-01.jpg?fit=620%2C9999px&amp;ssl=1)
*PG&E CEO Patricia Poppe (L) and San Jose Mayor Matt Mahan (R) converse during the launch event for the AI Center of Excellence in downtown San Jose at the City Hall Rotunda, April 2, 2025.*

### Collaboration for Growth

The launch is a joint effort by the **city of San Jose**, **PG&E**, **San Jose State University**, and **Plug and Play**, aimed at fostering a vibrant startup ecosystem. San Jose Mayor **Matt Mahan** emphasized the potential to create a **startup cluster** in the downtown area, with over **20 venture-backed AI startups** already established.

The AI Center is expected to open in **May**, with plans to host **up to 40 startups**, potentially bringing hundreds of tech jobs to the area. 

### Vision for the Future

“We would love to bring some of these companies like **Turing, Glean, Grok**, to this AI Center of Excellence,” said **Saeed Amidi**, Plug and Play’s CEO. He believes San Jose is primed to become home to **hundreds of startups** in the coming years.

### Educational Support

**San Jose State University** aims to support this initiative by providing tech-savvy students and entrepreneurs. President **Cynthia Teniente-Matson** stated that the university is aligned with the city’s vision to harness the potential of AI and emerging technologies.

### The Role of PG&E

**PG&E** is playing a crucial role in this development, focusing on enhancing infrastructure to meet the growing demand for energy from tech companies. CEO **Patricia Poppe** highlighted the importance of preparing the city for the future of AI and innovation.

### Innovative Showroom Concept

In addition to the AI Center, Plug and Play is exploring the creation of an **AI incubator showroom** across the street, allowing visitors to interact with AI technologies and see practical implementations.

### Optimistic Outlook

With a **6,200 square feet** office space leased in the **2 West Santa Clara building**, this initiative is set to attract more emerging AI startups to downtown, creating an exciting synergy between **innovation and urban experience**. 

![AI Center Ribbon Cutting](https://i0.wp.com/www.mercurynews.com/wp-content/uploads/2025/04/SJM-L-SJDTAI-03.jpg?fit=620%2C9999px&amp;ssl=1)
*Executives and officials cut a ribbon to mark the launch of the AI Center of Excellence in downtown San Jose, April 2, 2025.*

A new artificial intelligence center of excellence has officially launched in downtown San Jose and picked its first __cpLocation, a prominent tower at the corner of First Street and Santa Clara Street.

Unleashing Innovation: San Jose's New AI Center of Excellence Sparks Startup Growth

### Introduction
Artificial intelligence is making waves in **health care**, **energy**, and **education** across the Capital Region—but what about **agriculture**? This question was posed to **FarmSmarter Growing Technologies** co-founders Colin Raby and Grant Muslow during an honors large language model class at **LSU** in fall 2023.

### The Founders
Raby, an LSU alumnus, and Muslow, a graduate student, teamed up with biological engineering student **Julius Pallotta** and fellow alumnus **Cole Lacombe** to create **FarmSmarter**—an AI-powered assistant designed to identify plants, diagnose issues, and deliver tailored recommendations to farmers and growers using the latest agricultural research.

### Bridging the Gap
“It seemed like the worlds of agriculture and the cutting edge of AI weren’t really talking to each other,” Raby tells *Daily Report*. “The agricultural consulting process looks exactly like it looked in 1950, with people just going through best practices booklets and taking the advice of whoever pays to present their new pesticide or herbicide at an annual conference. We saw that there was a huge opportunity to use modern technology to make it all work better, faster, and save money to get high-quality answers.”

### Features of FarmSmarter
The team launched the first version of FarmSmarter in late February. Available on **desktop** and as a **mobile app**, the virtual assistant can:
- Identify **plants**, **insects**, and **fungi**
- Diagnose **crop diseases** using user-submitted photos and descriptions
- Provide insight into **environmental impacts**
- Recommend safe practices for pesticide and herbicide use.

### Growing Momentum
Though still in its early stages, FarmSmarter has gained momentum on the pitch competition circuit. The Baton Rouge startup:
- Won the **2024 J Terrell Brown Venture Challenge** at LSU
- Was a top 10 finalist in the **Baylor New Venture Competition**
- Competed in the **Louisiana Pelican Cup** at the University of Louisiana at Monroe
- Advanced to the final round of the **Arkansas Governor’s Cup**
- Will pitch this month at the **Rice Business Plan Competition** in Houston.

### Future Plans
With additional funding, the team plans to expand its capabilities, grow its staff, and roll out new features—including a **soil analysis tool** and a **historical data tracker** to monitor trends and performance over time.

Artificial intelligence is making waves in health care, energy and education across the Capital Region—but what about agriculture?  That’s the question posed to FarmSmarter Growing Technologies co-founders Colin Raby and Grant Muslow during an honors large language model class at LSU in fall 2023.  Raby, an LSU alumnus, and Muslow, an LSU graduate student, teamed […]

Revolutionizing Agriculture: Baton Rouge Startup Uses AI to Transform Farming Practices

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Unlock Spring Success: 5 Essential Grants for Entrepreneurs and Small Businesses!

University endowments have long been the **bedrock** of **venture capital funding** in the United States, providing reliable and substantial capital to fuel **innovation** and **entrepreneurship**. However, a convergence of **regulatory**, **social**, and **economic pressures** is now threatening this critical relationship, with potentially far-reaching consequences for the venture capital industry as a whole.

## The Changing Landscape of Endowment Participation
Historically, university endowments have been among the most significant **limited partners (LPs)** for venture capital funds. Today, they still represent approximately **15-20%** of all venture capital dollars raised, with the lion's share coming from the **30 largest endowments**. This substantial financial commitment has helped drive **technological innovation** and **economic growth** for decades.

**Meghan Reynolds**, Head Capital Formation and Talent at **Altimeter**, notes, "For so long, university endowments have been a backbone of VC funds. There is real stress on this channel that I believe will have real impact on VC dollars raised in coming years."

## The Looming Threat of Endowment Taxation
Perhaps the most immediate concern for university endowments is the specter of significantly increased **taxation**. Current legislative proposals could dramatically **increase the endowment excise tax** from its current rate of **1%** to as high as **21%**. This represents a **fourteen-fold increase** in tax burden, a staggering prospect for institutions whose financial planning relies on long-term stability.

## The NIL Revolution in College Athletics
The introduction of **Name, Image, and Likeness (NIL)** rights for college athletes has created another unexpected pressure point for university endowments. This shift in college sports economics has significant implications for university finances, as they must maintain competitive athletic programs while fulfilling broader educational and research missions, often with fewer unrestricted donation dollars.

## Federal Funding Challenges: DOGE and DEI Impacts
Recent political tensions surrounding **Diversity, Equity, and Inclusion (DEI)** initiatives and **Department of Government Ethics (DOGE)** requirements have led to significant disruptions in federal research funding for universities, forcing endowments to divert capital to maintain essential research programs.

## Distribution Problems: Value Without Liquidity
Many university endowments have seen tremendous **paper gains** from their venture investments, but these gains often remain **illiquid** for extended periods. This lack of liquidity means that endowments face a timing mismatch: they have future value but current obligations to fund.

## The Implications for Venture Capital
The combined effect of these pressures could significantly impact venture capital fundraising in the coming years, with analysts predicting:
1. **Reduced commitment sizes**: Endowments may continue to participate in venture capital but with smaller amounts.
2. **More selective re-ups**: Endowments may become more selective about which managers they support.
3. **Higher hurdles for new relationships**: First-time fund managers may find it increasingly difficult to attract endowment dollars.
4. **Greater emphasis on liquidity terms**: Endowments may push for investment terms that provide earlier liquidity.

## Looking Ahead: An Evolving Partnership
Despite these challenges, the fundamental relationship between university endowments and venture capital remains valuable. Universities need the outsized returns that venture capital can provide, and venture firms benefit from the patient, sophisticated capital that endowments represent. Understanding these pressures and proactively addressing the needs of university endowments will be crucial for venture capital firms to maintain these important relationships.

As one veteran venture capitalist puts it: "The best funds will always find capital, but the definition of 'best' is evolving. It's about partnership and alignment with the real challenges your LPs are facing."

The coming years will undoubtedly see significant changes in how university endowments engage with venture capital, shaping the next era of **innovation financing** in the US and beyond.

The Changing Landscape of Endowment Participation Historically, university endowments have been among the most significant limited partners (LPs) for venture capital f...

How University Endowments are Shaping the Future of Venture Capital: The Challenges Ahead

### A Game-Changer for Tax Season

Accounting software company **Open Ledger** has launched a new product just in time for tax day: **PokéTax**. This innovative game makes tax filing enjoyable by turning it into a **Pokémon-style showdown**. Instead of filling out tedious tax forms, users battle against **Tax Trainers**—gym leaders who represent different sections of a tax form, such as income, deductions, and credits. Each trainer poses questions that help players complete their tax filings.

![PokéTax](https://techcrunch.com/wp-content/uploads/2025/04/OpenLedger-PokeTax.png)
*Image Credits: Open Ledger*

“Once you finish your PokéTax run, we guide you to the **IRS Direct File** site to officially submit,” said Open Ledger co-founder **Pryce Adade-Yebesi**. He emphasized that this is not an April Fool’s joke, stating, “This is real; it works. Tax fraud isn’t funny—and neither is the IRS.”

Adade-Yebesi and co-founder **Ashtyn Bell** launched Open Ledger earlier this year, raising **$3 million** in funding from **Kindred Ventures** and **Black Ventures**. The game, which is open-source, originated as a lighthearted concept: “Could we actually pull this off?” They clearly did.

The game features an **AI assistant** to help users organize their responses, and players can earn **badges** by discovering new deductions while battling the Tax Trainers.

![PokéTax Gameplay](https://techcrunch.com/wp-content/uploads/2025/04/22.png)
*Image Credits: Open Ledger*

Unlike other attempts to gamify tax filing, such as the **dating-style game Tax Heaven 3000**, PokéTax aims to make the process more engaging and less daunting. “Taxes are such an unloved part of being a good citizen,” Adade-Yebesi said, “but by adding fun to financial processes, we can make them more engaging and way less soul-sucking.”

**Taxes are due April 15.**

Accounting software company Open Ledger has launched a new product in time for tax day.  Meet PokéTax, a game that helps make tax filing quite fun.

Transforming Tax Season into a Fun Game: Discover PokéTax!

### **Starfive Technology: A New Era in Chip Design**

Shanghai Starfive Technology is making waves in the semiconductor industry with its innovative chips based on **RISC-V**, an open-source architecture that breaks away from traditional Western designs like Intel’s x86 and Arm. This strategic move comes at a time when **China** is intensifying efforts to establish semiconductor self-sufficiency amidst escalating tensions with the **U.S.**.

### **A Unique Approach**
Unlike many startups that rush to market, Starfive, backed by Hong Kong billionaire **Peter Lee**, is adopting a **calculated strategy**. The company began by focusing on a niche product: a RISC-V chip for **smart gas meters**. This product aligns perfectly with Lee’s other ventures, as his company, Hong Kong & China Gas, has already purchased **4 million** chips since their launch in late 2022.

### **Expanding Horizons: Data Centers**
Starfive is now turning its attention to the booming **data center** sector, with plans to mass-produce a RISC-V chip for data center management later this year. They have secured a significant partnership with **Xfusion Digital Technologies**, a spinoff of tech giant **Huawei**.

![Peter Lee](https://specials-images.forbesimg.com/imageserve/67eb89f1b60a0f0e30597dd9/Peter-Lee/1960x0.jpg?fit=scale)
*Peter Lee, co-chairman of Henderson Land and founder of Full Vision Capital, speaks at a press conference announcing Starfive's partnership with Xfusion in Hong Kong on March 22, 2024.*

### **The RISC-V Advantage**
Starfive is one of the pioneering firms in **China's RISC-V chip** landscape, competing with renowned players like **Alibaba** and **Huawei**. The open-source nature of RISC-V allows China to reduce its dependency on Western technology, especially as the U.S. tightens access to advanced chips. The Chinese government is poised to promote RISC-V chips nationwide, ensuring a robust market for Starfive’s innovations.

### **Strong Backing and Future Prospects**
Founded in **2018**, Starfive has attracted significant investments from various entities, including **Baidu** and state-backed funds. Lee's foresight in establishing a RISC-V division in China has proven prescient, as the company continues to garner investor interest amidst a growing demand for alternative chip solutions.

### **Strategic Focus on Domain-Specific Applications**
Starfive aims to avoid the pitfalls of chasing trends like AI, choosing instead to focus on **domain-specific applications**. Their smart gas meter chips serve as a prime example of addressing immediate market needs. The company has also developed a **data center management chip**, designed for remote server control, set to be sold to Xfusion starting in early 2026.

As demand for **RISC-V** technology surges, Starfive remains committed to a careful and strategic expansion, ensuring that each product is developed with precision and purpose.

Shanghai Starfive Technology’s chips are based on RISC-V, which, unlike Intel’s x86 and Arm, is an open-source design that’s not controlled by a Western company.

How Chinese AI Startups are Revolutionizing Their Business Models Post DeepSeek Success

Summary:

The Shift in Chinese AI Startups

Rethinking Strategies

The Competitive Edge

Conclusion

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Other Latest News

Unleashing Innovation: San Jose's New AI Center of Excellence Sparks Startup Growth

Revolutionizing Agriculture: Baton Rouge Startup Uses AI to Transform Farming Practices

Unlock Spring Success: 5 Essential Grants for Entrepreneurs and Small Businesses!

How University Endowments are Shaping the Future of Venture Capital: The Challenges Ahead

Transforming Tax Season into a Fun Game: Discover PokéTax!

Unveiling Starfive: The Chinese Startup Revolutionizing Chip Technology Without Western Dependency

Other Latest News

Unleashing Innovation: San Jose's New AI Center of Excellence Sparks Startup Growth

Revolutionizing Agriculture: Baton Rouge Startup Uses AI to Transform Farming Practices

Unlock Spring Success: 5 Essential Grants for Entrepreneurs and Small Businesses!

How University Endowments are Shaping the Future of Venture Capital: The Challenges Ahead

Transforming Tax Season into a Fun Game: Discover PokéTax!

Unveiling Starfive: The Chinese Startup Revolutionizing Chip Technology Without Western Dependency