TMTPOST -- Alibaba’s Hong Kong Entrepreneurs Fund (AEF) and Australian fintech firm Tanggram announced on Thursday a joint fundraising initiative aimed at accelerating artificial intelligence (AI) applications across the Asia-Pacific region.

The initiative seeks to raise 50 million Australian dollars in Australia by December 2026 to support AI enterprises, marking a significant step in international capital collaboration in the region.

Since its founding in 2015, AEF has invested in more than 80 startups, including well-known firms such as SandboxVR, Sleekflow, and Airwallex. In recent years, the fund has shifted its focus toward AI startups. In December 2024, AEF launched the NextGen fund, specifically dedicated to investing in artificial intelligence ventures, maintaining a strong interest in companies in China, North America, and the broader Asia-Pacific region.

Luomeiqi Zhou, President of Alibaba Hong Kong Entrepreneurs Fund and Partner at NextGen Partners, told Reuters that the collaboration with Tanggram not only expands AEF’s sources of capital but also provides an entry point into Australia’s startup ecosystem. She said the partnership will allow local projects to leverage Alibaba’s ecosystem to gain better access to Chinese and Southeast Asian markets.

“The NextGen fund is particularly focused on AI applications rather than large language model projects,” Zhou said. “The emergence of open-source solutions such as DeepSeek is accelerating AI application development and bringing new opportunities to the market. We also see a new generation of Chinese AI entrepreneurs with a global mindset, whether they are startup founders from China or Chinese entrepreneurs in North America.”

Tanggram, a digital wealth management platform founded in 2017, uses its “invest as you shop” model to attract retail investors and has been recognized multiple times as one of Australia’s leading wealth management platforms.

The firm’s co-founder, Xie Wenxuan, described the partnership as a way to break down barriers and expand investment channels for Australian pension and private equity funds.

“Through our partnership with AEF, Australian private equity funds can invest in international AI projects via the NextGen fund, capturing new global growth opportunities in AI,” Xie said. “This collaboration also lowers the investment threshold for individual investors who want to participate in AEF’s initiatives.”

Australia’s pension system, one of the largest globally with assets exceeding $2.2 trillion in 2024, has a long history of global asset allocation. Historically, private equity funds and individual investors in Australia faced challenges accessing emerging global industries, particularly AI. The AEF-Tanggram partnership aims to provide investors with a direct path to the global AI market.

The fundraising initiative will be implemented in three phases, with major fundraising milestones scheduled for the first, third, and fourth quarters of 2026. Zhou emphasized that the collaboration reflects AEF’s broader strategy of global expansion, while for Tanggram, it represents the company’s first foray into AI investment.

Analysts say the partnership highlights a growing trend in Asia-Pacific markets, where local investors are increasingly seeking exposure to global AI innovation. The combination of Chinese investment expertise and Australian wealth management infrastructure could facilitate faster adoption and commercialization of AI technologies in the region.

“The initiative will provide Australian investors with opportunities to participate in one of the fastest-growing sectors globally,” said Zhou. “By connecting capital, talent, and technological resources, we hope to accelerate the development of AI applications that can benefit the broader economy.”

This collaboration also aligns with Alibaba’s broader AI strategy, which emphasizes both technological development and market expansion. Over the past year, Alibaba has increased investments in AI infrastructure, cloud computing, and AI application platforms, positioning itself as a global leader in full-stack AI services.

The partnership is expected to attract attention from startups, investors, and policymakers across the Asia-Pacific, as AI continues to reshape industries ranging from finance and healthcare to logistics and digital services. Analysts say that with additional capital from international collaborations, the region could see faster innovation cycles and broader adoption of AI technologies.