Investments in embodied AI in China exceeded 65 billion yuan in 2025, writes 36Kr

On July 9, 2026, Chinese outlet 36Kr published an annual rating "China's Investment Institutions in Direct Investment Industry 2026," prepared by analytics project "暗涌Waves," and cited key figures on China's venture capital shift toward artificial intelligence and hard tech.

How much embodied AI attracted

According to the cited data, in 2025 alone, the embodied AI direction (具身智能, embodied intelligence) — robotics and physical systems with AI — attracted over 65.6 billion yuan in financing, with almost a thousand new companies entering the industry. In the long term, the share of hard tech in China's venture investments has grown from 38% to 62% over five years.

• Publication of the rating — July 9, 2026, author — analytics project "暗涌Waves"
• Embodied AI attracted over 65.6 billion yuan in 2025, nearly 1,000 companies received funding
• The share of hard tech in China's venture investments grew from 38% to 62% over five years
• Global private PE-funding volumes fell 17% year-over-year in 2025, in Asia-Pacific — nearly half
• Source of macro estimate — McKinsey report on global private markets, published in early 2026

Why capital is moving to hard tech

The material cites a thesis from McKinsey's global private markets report, released in early 2026: "alpha" (excess returns) is no longer found but created — old levers like declining rates, rising valuation multiples, and cheap financing have, according to the report's phrasing, disappeared one by one over the past decade. Against this backdrop, global private PE-funding volumes contracted 17% year-over-year in 2025, while in the Asia-Pacific region the decline was nearly half.

In China, capital sources have shifted: retiring dollar funds have been replaced by state and industrial capital, which now largely determines deal terms. According to 36Kr's phrasing, the primary market narrative around artificial intelligence "subtly changed logic" — AI stopped being one of many promising directions and increasingly penetrates into almost all industries.

What the Waves rating includes

The "暗涌Waves" rating for 2026 includes several lists: top-100 investors most popular with entrepreneurs, the 30 most active investors for 2025-2026, and top-50 early-stage investment institutions in China. The publication notes that some new players that grew out of industry expertise closed and launched their first funds quietly over the past year, while some once-famous names on the market have noticeably reduced activity.

What this means

The figures cited by 36Kr show not just growing interest in AI in China, but a structural shift in the entire venture market: capital is moving out of classic internet and consumer stories into physical, capital-intensive technologies like robotics and embodied AI — even as the total global PE/VC funding available simultaneously shrinks.

Frequently asked questions

How much did embodied AI attract in China in 2025?

According to data cited by 36Kr, the embodied AI direction (robotics with AI) attracted over 65.6 billion yuan in financing from nearly a thousand companies in 2025.

How has the share of hard tech in

China's venture investments changed?

Over five years, the share of hard tech in total China venture investment grew from 38% to 62%, indicating capital shift from internet services to physical and capital-intensive technologies.