China "is pouring money into building an AI supply chain with as little reliance on the U.S. as possible," the Wall Street Journal noted this weekend. But what does that look like? The New York Times visits Liangzhu, "the coder 'village' at the heart of China's AI frenzy... a quiet suburb of the southern Chinese city of Hangzhou... As China faces off with the United States over tech primacy, Hangzhou has become the centre of China's AI frenzy," with its proximity to tech companies like Alibaba and DeepSeek..."In Liangzhu, many engineers said they were killing time until they could create their own startups, waiting out noncompete agreements they had signed at bigger companies like ByteDance...But some said the government support for Hangzhou's tech scene had scared off some investors. Several company founders, who asked not to be named so they could discuss sensitive topics, said it was difficult for them to attract funds from foreign venture capital firms, frustrating their ambitions to grow outside China. The nightmare situation, they said, would be to end up like ByteDance, the Chinese parent of TikTok, whose executives have been questioned before Congress about the company's ties to the Chinese government. Founders described choosing between two paths for their companies' growth: Take government funding and tailor their product to the Chinese market, or raise enough money on their own to set up offices in a country like Singapore to pitch foreign investors. For most, the first was the only feasible option. Another uncertainty is access to the advanced computer chips that power artificial intelligence systems. Washington has spent years trying to prevent Chinese companies from buying these chips, and Chinese companies like Huawei and Semiconductor Manufacturing International Corp. are racing to produce their own. So far, the Chinese-made chips work well enough to help companies like ByteDance provide some of their AI services in China. Many Chinese companies have created stockpiles of Nvidia chips despite Washington's controls. But it is not clear how long that supply will last, or how quickly China's chipmakers can catch up to their American counterparts... Liangzhu villagers have been hosting film nights. They had recently gathered to watch "The Matrix." Afterward, they decided the movie should be required viewing, Lin said. Its theme — people finding their way out of a vast system controlling society — provided spot-on inspiration. Aspiring founders in Liangzhu, even those who did not go to top universities, believe they could start the next world-changing tech company, said Felix Tao [a 36-year-old former Facebook and Alibaba employee.] "Many of them are super brave to make a choice to explore their own way, because in China that is not the common way to live your life."Read more of this story at Slashdot.