China is racing to develop world-leading artificial-intelligence technology. This city is paving the way.
More than two decades ago, Jack Ma launched Alibaba from a small apartment here, kick-starting his hometown’s transformation from scenic city to tech powerhouse.
These days, Hangzhou is an AI hub at the center of China’s global tech ambitions. Its breakthrough moment came earlier this year, when local company DeepSeek shocked the world with an AI model that rivaled American programs, at a much lower cost.
“All of Hangzhou went into a frenzy,” said Zhao Ji, a 41-year-old entrepreneur who is building an AI startup from his apartment in the city.
DeepSeek’s shot to fame was no fluke. The capital of the eastern Zhejiang province and a prosperous city of roughly 13 million people, Hangzhou has spent decades cultivating entrepreneurship. Supportive government policies, research universities, major tech companies such as Alibaba and NetEase and relatively low living costs compared with Beijing and Shanghai have made Hangzhou a mecca for tech talent.
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