China Artificial Intelligence Town is located in Hangzhou, capital of East China's Zhejiang province. [Photo/zj.zjol.com.cn]

Several artificial intelligence companies in Hangzhou, capital of East China's Zhejiang province, have received their first round of investment as they go through the initial public offering (IPO) process.

This has signified that the commercial value of AI is being further tapped into by the capital market at an accelerating speed.

Hangzhou Moredian Technology Co, an AI company, recently announced that it completed its financing, with Hangzhou Raycloud Co being the investor.

This is the sixth time that Hangzhou Moredian Technology Co has initiated financing, only nearly two months since the last time, in which the company received 120 million yuan ($18.52 million) in financing.

Hangzhou Mindflow Technology Co also recently announced that it received more than 10 million yuan in financing. The company, which was founded only two years ago, with a focus on providing AI solutions, also initiated a round of financing in September 2019.

A student plays VR games at China Artificial Intelligence Town, which is located in Hangzhou, capital of East China's Zhejiang province. [Photo/zj.zjol.com.cn]

Hangzhou National Chip Technology Holdings Co, which received tens of millions of yuan in financing, is now planning to go public on the science and technology innovation board.

The company focuses on developing chips used in smart loudspeaker boxes, household appliances, and smart car systems.

Hangzhou is making strong efforts to build an AI city. Currently, it leads Chinese cities in various aspects of developing AI.

Statistics show that the Hangzhou AI industry generated 136.1 billion yuan in business revenue from January to November in 2020, a year-on-year increase of 12.64 percent, accounting for 53.87 percent of the total AI industrial business revenue in Zhejiang during that same period.