Cyberport wins $3 billion AI handout

Michael Shum

The government will provide a substantial allocation of HK$3 billion to Cyberport for the implementation of a three-year artificial intelligence subsidy scheme, Paul Chan said.

The scheme aims to support local universities, research institutes and enterprises in harnessing the computing power of the AI Supercomputing Center.

Chan said AI is significant in driving technological and industrial transformation and propelling the development of the digital economy in Hong Kong.

In addition to supporting local entities, the subsidy will be utilized to enhance the cybersecurity and data protection measures of the center.

It will also serve as an incentive to attract AI experts, enterprises and research and development projects from mainland China and overseas to Hong Kong.

Chan said the AI Supercomputing Center will commence operations within this year. By early 2026, the center's computing power is projected to reach an impressive 3,000 petaFLOPS, equivalent to processing nearly 10 billion images per hour.

Government sources said: "the subsidy scheme aims to facilitate the utilization of the computing power at the AI Supercomputing Centre by local universities, research institutes and enterprises."

The government is targeting a simultaneous launch of the scheme and the Center within this year. However, the subsidy amount will be adjusted based on the category of applicants as the government follows a user pays principle and will not provide full subsidies.

Chan also announced the allocation of a HK$100 million start-up fund to support self-financing post-secondary institutions in establishing an Alliance of Universities in Applied Sciences.

"The purpose of this alliance is to collectively promote vocational and professional education and training and enhance its reputation among parents, students and society in general," he said.

The government has also set aside approximately HK$680 million to bolster the efforts of the Vocational Training Council. This includes extending pilot schemes that incentivize employers to provide workplace learning opportunities for students and granting subsidies to part-time students. Additionally, there will be increased support for student-exchange activities, assistance for students with special educational needs and encouragement for employers to offer workplace learning opportunities.

The government also plans to allocate HK$6 billion to subsidize the establishment of life and health technology research institutes at eight local universities. These institutes will collaborate with organizations from mainland China and overseas.

The funding will be drawn from the HK$10 billion budget allocated in the previous year's budget to promote the development of life and health technology.

The objective is to facilitate research and development activities, foster the transformation of research outcomes and attract top innovation and technology talent and research teams to Hong Kong.

Government sources said that only institutions affiliated with the eight subsidized local universities will be eligible for the scheme and the government intends to subsidize a maximum of three institutions in the long run.

Chan said the government is committed to allocating resources to nurture local talent across various sectors including innovation and technology, healthcare, maritime and aviation, patent and international legal talent.

michael.shum@singtaonewscorp.com