Tech Giants: Starting from Bankrupt Companies

120: Chapter 120: Strategic Layout of Hundreds of Billions of YuanDecember 1st, 10:00 AM, Technology Building, Shennan Avenue, Shenzhen.

This newly completed skyscraper welcomed its first master today—the founding ceremony of ”Star Capital.”

From the top floor of the building, one could overlook Shenzhen 360 degrees, with Hong Kong, Dongguan, and Huizhou all within view.

In the banquet hall, over three hundred guests were already seated.

In the front row were leaders from the Ministry of Science and Technology, MIIT, and the CSRC; in the middle were representatives from various investment institutions, technology companies, and universities; and in the back were media reporters.

Su Chen walked onto the podium without a long, drawn-out opening statement.

”Three years ago, when I took over Spark Group, I said in a 100-square-meter office in the technology park: We are going to build China’s own chip. Many people laughed and called me crazy.”

He paused and scanned the audience: ”Today, we are here, using 150 billion, to say the next sentence: We are going to invest in the future of Chinese technology.”

Applause erupted.

Su Chen pulled up the PPT, and the organizational chart of ”Star Capital” appeared on the big screen:

Total scale: 100 billion yuan

Investor: Su Chen (wholly owned)

Management team: Chen Peng (CEO), Shen Nanpeng (Chairman of the Investment Committee)

Investment direction:

1. Semiconductor industry chain (30 billion)

2. Artificial Intelligence infrastructure (30 billion)

3. New energy revolution (20 billion)

4. Biotechnology (20 billion)

”This is not an ordinary PE fund,” Su Chen said. ”We have three characteristics: First, we only invest in hard technology, not model innovation; second, the investment horizon is long, and we may not exit for ten years; third, we have deep synergy with the Spark Group ecosystem, and invested companies can access Spark Group’s technology and market resources.”

He announced the first investment project: ”Today, Star Capital signed an agreement with Shanghai Huali Microelectronics to acquire 49% of its equity for 10 billion yuan.”

The signing scene appeared on the big screen. Zhao Jianguo, Chairman of Huali Microelectronics, and Su Chen signed the agreement and exchanged documents.

Zhao Jianguo took the stage to speak: ”Huali Microelectronics has a mature 12-inch production line but lacks advanced processes. Spark Group has 16nm FD-SOI technology but lacks production capacity. This cooperation is a perfect complement—Huali Microelectronics will manufacture for Spark Group, and Spark Group will export technology to Huali Microelectronics. Together, we will build world-class Chinese chips.”

The applause was even more enthusiastic. This was the first deep integration of the Chinese semiconductor industry chain—the design company and the foundry were not in a simple buyer-seller relationship, but a deep integration at the equity level.

After the ceremony, Su Chen was surrounded by reporters.

”Mr. Su, with 100 billion in Star Capital, how many projects do you expect to invest in?”

”Initially, we will focus on 20-30 key projects, with each project receiving an investment of 1-5 billion. We won’t spread our resources thin; if we invest, we will invest in those that can change the landscape.”

”What are the investment criteria?”

”Three criteria: First, the technical barrier must be high enough; second, the team must be strong enough; third, there must be strategic synergy with Spark Group. If these three conditions are met, we will invest even if it means losing money.”

”Expected return rate?”

”No expectations,” Su Chen said frankly. ”Hard technology investment may not see returns for ten years. But if we invest in a world-leading technology, the return will be a thousand or ten thousand times over—not just financial returns, but the country’s industrial security.”

The next day, December 2nd, Yunqi Town, Hangzhou.

This place is known as the ”Silicon Valley of China,” surrounded by Alibaba’s cloud headquarters, Zhejiang Lab, and Westlake University.

Today, it welcomed a new member—the preparatory launch meeting for ”Star Artificial Intelligence Company.”

The venue was set in the International Convention Center of Yunqi Town, with a design full of futurism: white streamlined architecture, huge glass curtain walls, and interior featuring holographic projections and intelligent interactive devices.

When Su Chen walked onto the stage, the people sitting in the audience made the media gasp—half of China’s AI landscape was here:

Lu Qi, former Global Executive Vice President of Microsoft and President of Baidu, whose new identity today is CEO of Star AI.

Zhang Tong, former Director of Tencent AI Lab and IEEE Fellow, serving as CTO.

Although Li Feifei was at Stanford, she appeared at the venue via holographic projection—she is the Chief Scientific Advisor.

And more than a dozen top AI scholars from Tsinghua, Peking University, and the Chinese Academy of Sciences.

”Many people ask me: Why put the AI company in Hangzhou instead of Shenzhen?” Su Chen opened. ”Because Hangzhou has the best AI ecosystem in China—Alibaba’s data, Zhijiang’s computing power, and Zhejiang University’s talent. Doing AI is not about working behind closed doors; you have to integrate into the ecosystem.”

He announced: ”Star AI’s initial investment is 30 billion yuan, of which 20 billion will be used to build a supercomputing center. The planned computing power will reach 100 EFLOPS, entering the top three globally.”

This number caused gasps. Currently, the world’s fastest supercomputer is America’s ”Frontier,” with a computing power of 110 EFLOPS. Star AI’s goal is to directly benchmark against the world’s number one.

Lu Qi took the stage, his speaking style rational yet passionate:

”Star AI will not make general large models, nor will we make chatbots. We focus on three vertical fields: First, Industrial AI, used for chip design, new material discovery, and industrial process optimization; second, Scientific AI, used for drug R&D, genetic analysis, and astrophysics; third, Autonomous Driving AI, deeply bound with Hongqi Automobile, with the goal of achieving L4 autonomous driving mass production by 2022.”

He demonstrated a demo: using AI to design chips. Traditional methods require engineers to draw for several months, while AI only needs a few hours, and power consumption is optimized by 15%.

”This is just the beginning,” Lu Qi said. ”We want to use AI to increase the speed of scientific discovery tenfold and reduce the cost of industrial innovation tenfold.”

Zhang Tong added technical details: ”We will open-source the base models, but industry solutions will be charged. The goal is not to make money from AI, but to use AI to help all walks of life make money.”

After the launch meeting, Su Chen and Lu Qi chatted on the terrace for a long time.

”Dr. Lu, to be honest, do you think we can do it?” Su Chen asked.

Lu Qi looked at the West Lake in the distance, the surface of the lake shimmering in the winter sunlight: ”Mr. Su, I have spent thirty years in America and have seen too many technology waves. Personal computers, the Internet, mobile Internet, AI... The winner of every wave is not the one with the strongest technology, but the one with the most complete ecosystem.”

He turned around: ”Spark Group has chips, cars, materials, and manufacturing. In this ecosystem, AI is not an isolated technology, but the ’brain’ that empowers all businesses. This advantage is unique in the world.”

Su Chen nodded: ”That’s why I dare to invest 30 billion. Because this is not betting on a technology, it’s betting on a future.”

December 4th, Star Building, Shenzhen.

Spark Group Annual Strategy Meeting, 200 core executives flew in from all over the world.

This was the first all-hands meeting after the reduction of holdings, and the atmosphere was exceptionally solemn.

Su Chen walked onto the podium, with no PPT, no speech script.

”Three years ago, we held our first strategy meeting here, 13 people, discussing how to survive.” His voice spread throughout the venue through the speakers. ”Today, 200 people, discussing how not to fail this era.”

He pulled up a chart: ”In 2017, Spark Group’s net profit was 120 billion. This number is an honor, but even more so, a responsibility. If we turn this 120 billion into savings, real estate, or financial games, then we are sinners of history.”

The venue was silent.

”Therefore, we reduced our holdings by 150 billion in stocks. Some people say I’m stupid—the stock price will still rise, why sell now? I say: Because money on the books is just a number; it only becomes power when invested.”

He walked to the front of the stage, his eyes scanning every face:

”Old Li, Zhang Wei, chip team—in the next five years, I want you to achieve 7nm. Not laboratory samples, but mass production. How much money do you need? 50 billion? 100 billion? I will give it.”

”Zhou Qingyu, automobile team—Hongqi Automobile must become a global luxury brand within five years. Not by relying on cost-effectiveness, but by relying on technology, design, and brand. Need to build factories, R&D centers, sales networks? How much do you need? I will give it.”

”Wu Yi, materials team—’Shadow’ and ’Heavenly Bow’ are just the beginning. I want next-generation stealth materials, next-generation super-strong fibers, next-generation high-temperature resistant alloys. Need money for R&D? I will give it.”

”Gao Mingxuan, heavy industry team—industrial mother machines must be broken through within five years. Need to buy equipment, poach talent, build laboratories? I will give it.”

”Lu Qi, AI team—supercomputing centers, data centers, talent introduction, how much do you need? I will give it.”

For every sentence he said, the backs in the venue straightened a little more.

”But the money is not given for free,” Su Chen changed the subject. ”I want to see results. Five years from now, I want to see:

First, China has an autonomous and controllable 7nm chip industry chain;

Second, Hongqi Automobile driving on the streets of Munich, Tokyo, and Los Angeles;

Third, our materials used on sixth-generation fighter jets and moon landing spacecraft;

Fourth, our machine tools producing the world’s most precise parts;

Fifth, our AI discovering new materials, new drugs, and new physical laws.”

He paused, his voice low and powerful:

”If we achieve this, everyone here today will be a hero of this country. If we can’t...”

He didn’t continue, but everyone understood.

”One last thing,” Su Chen looked at the audience. ”A year ago, I said one sentence: Dedicate this life to the country, and do not fail the era. Today, I still say this. It’s just that the way of ’dedicating to the country’ has changed—not empty talk about ideals, but taking out 150 billion in real money to bet on a future.”

He raised his right hand: ”Those willing to bet with me, raise your hands.”

In the venue, 200 hands were raised in unison.

No hesitation, no doubt.

Outside the window, the sunlight in Shenzhen was just right. This young city once again witnessed the birth of a promise.

Not a promise to the stock price, but a promise to the future.

And 150 billion is just the first deposit for this promise.

The real gamble is only just beginning.