Liangzhu, the coder 'village' at the heart of China's AI frenzy

HANGZHOU: It was a sunny Saturday afternoon, and dozens of people sat in the grass around a backyard stage where aspiring founders of tech startups talked about their ideas. People in the crowd slouched over laptops, vaping and drinking strawberry Frappuccinos.

A drone buzzed overhead. Inside the house, investors took pitches in the kitchen.It looked like Silicon Valley, but it was Liangzhu, a quiet suburb of the southern Chinese city of Hangzhou, a hot spot for entrepreneurs and tech talent lured by low rents and proximity to tech companies like Alibaba and DeepSeek. "People come here to explore their own possibilities," said Felix Tao, 36, a former Facebook and Alibaba employee who hosted the event.

Virtually all of those possibilities involve AI. As China faces off with the US over tech primacy, Hangzhou has become the centre of China's AI frenzy. A decade ago, provincial and local govts started offering subsidies and tax breaks to new firms in Hangzhou, a policy that has helped incubate hundreds of startups. On weekends, people fly in from Beijing, Shanghai and Shenzhen to hire programmers.Lately, many of them have ended up in Tao's backyard.

Now Tao's home is a hub for coders who have settled in Liangzhu, many in 20s and 30s. They call themselves "villagers", writing code in coffee shops during the day and gaming together at night, hoping to harness AI to create their own companies. Hangzhou has already birthed tech powerhouses, including Alibaba and DeepSeek. Graduates from Hangzhou's Zhejiang University have become sought-after employees at Chinese tech firms.

Mingming Zhu, founder of Rokid that makes AI-enabled eyeglasses, said govt officials had helped him connect with Rokid's earliest investors, including Alibaba founder Jack Ma.But some said the govt support had scared off some investors. Founders said it was difficult to attract funds from foreign venture capital firms, frustrating their ambitions to grow outside China. Another uncertainty is access to the advanced computers chips. Many in Tao's backyard said the atmosphere in Hangzhou, set on the banks of a lake that was muse to generations of poets and painters, fuelled their creativity. Lin Yuanlin, whose Zeabur provides back-end systems to those making apps and websites, said he can lean over to someone in a coffee shop or wander into a neighbour's living room and learn what kind of support they need for their startups. Lin found himself going to Liangzhu so often that he moved there.