China's first AI incubation hub in Shanghai has become a key driver for the city's thriving AI industry, which surpassed 450 billion yuan (about 62 billion U.S. dollars) in 2024. 

 Since its establishment in September 2023, Mosu, or Model Speed Space, has brought together 250 companies specializing in computing power, data, and application development, creating a unique environment where businesses in the same building often form upstream and downstream partnerships.

"We can quickly understand the needs and directional adjustments of upstream partners. It also allows us to stay updated on the latest technological trends and demands," said Lu Changlu, head of a company based in Mosu. 

Mosu not only facilitates collaboration among AI enterprises but also provides tailored support for startups through a combination of policies and services.

"Beyond rent subsidies, we provide computing power subsidies, filing subsidies, and talent policy support. We also offer guidance on regulatory filings. Essentially, we identify the pain points of enterprises and provide solutions based on their needs," said Yang Jingjing, president of Shanghai Large Model Ecological Development, the operator of Mosu.

The hub's success is a testament to Shanghai's broader AI ambitions. In 2024, the city's AI industry grew by over 7.8 percent, with 60 large AI models approved by the Cyberspace Administration of China through a regulatory process that ensures compliance with national standards.