Chinese venture capital firm 5Y Capital is seeking to raise a new fund with a target size of about $600 million, according to ChainCatcher, which cited people familiar with the matter. The fundraising is expected to begin later this year, and the firm plans to complete the process in early 2027. The people asked not to be identified because the information has not been made public. 5Y Capital is an early investor in Chinese technology companies including Moonshot AI and Xiaomi. The new vehicle would place the firm among a group of fund managers focused on the Chinese market that are pitching fresh startup investment opportunities to investors. No further fundraising details were disclosed in the report.

Huawei alumni have become one of the strongest fundraising groups in China’s embodied intelligence sector this year, according to incomplete data cited from ITjuzi. From Jan. 1 to Aug. 14, 2026, 12 embodied AI companies founded or co-founded by entrepreneurs with Huawei backgrounds completed 24 financing rounds, with total funding estimated at roughly 8.635 billion yuan. The pace was heavily concentrated in early stages, with 9 angel rounds, 5 seed rounds and 5 Pre-A rounds, meaning more than 80% of the deals landed before companies had spent much time in market. Capital was also concentrated at the top. X Square Intelligence, founded less than two years ago by former Huawei autonomous driving CTO and chief scientist Chen Yilun and former Baidu intelligent driving executive Li Zhenyu, closed a $455 million Pre-A round in April, described in the report as the largest single financing round in China’s embodied intelligence industry. Kunlunxing Robotics also raised funding worth tens of billions of yuan, and the two companies together accounted for about 70% of the Huawei-linked total. Other names highlighted in the report include Ola Wanxiang, Knowin Intelligence, Gunao Panshi, Beta Infinite, Moxi Intelligence, Moushen Intelligence, Yuansheng Intelligence, Xinzhi Jushen, Zhicheng AI and Qiwu Technology.

Moonshot AI is reportedly in early talks for a Hong Kong IPO with Goldman Sachs and CICC, while also discussing up to $1 billion in fresh funding that could lift its valuation to about $18 billion.

Shenzhen-based Yunbao Smart has had its application for a ChiNext IPO accepted by the Shenzhen Stock Exchange, putting the chip startup on track to pursue the label of China’s first listed DPU company. Founded in August 2020 by Stanford PhD Xiao Qiyang, the company focuses on data processing units, a segment that gained attention after Nvidia introduced the DPU concept and Jensen Huang outlined the “CPU+DPU+GPU” architecture. According to the prospectus cited in the report, Yunbao Smart developed what it describes as China’s first high-performance, general-purpose programmable DPU SoC chip, with network bandwidth of 400 Gbps, four times the performance of traditional solutions, and power consumption cut by more than 50%. The company said it moved from FPGA verification to 6nm SoC mass production in four years. Financially, revenue rose from RMB 170,000 in 2023 to RMB 36.35 million in 2024 and RMB 370 million in 2025, while net losses were RMB 667 million, RMB 600 million, and RMB 1.19 billion over the same period. Tencent, which first invested in the angel round and kept backing later financings, held 19.7792% before the IPO through affiliated entities, making it Yunbao Smart’s largest shareholder. The report said the company’s valuation exceeded RMB 14 billion after a funding round in late November 2025.