WORLD_ Chinese Cash That Powered Silicon Valley Is Suddenly Toxic

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Chinese Cash That Powered Silicon Valley Is Suddenly Toxic

As U.S. startups reject their money, Chinese venture-capital firms in U.S. are dialing back investments, structuring deals to avoid regulators or shutting down

By Rolfe Winkler
June 11, 2019 10:28 a.m. ET


Silicon Valley startup Pilot AI Labs Inc. signed a Chinese-backed venture-capital firm as its first big investor. By last summer, Pilot AI wanted it gone.

The U.S. startup hoped to sell more of its artificial-intelligence software to the U.S. government after working with the Pentagon, according to people familiar with its operations, and worried its effort could be hurt by the investor’s ties to China’s government. The chairman of the Chinese-backed investor, Digital Horizon Capital, was asked to sell back its stake, said...

READ MORE: https://www.wsj.com/articles/chinese-cash-is-suddenly-toxic-in-silicon-valley-following-u-s-pressure-campaign-11560263302


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