Gu Zhongli invested 100 million USD in AI! Cheng Yu Holdings raises 1.5 billion for Nvidia Supply Chain.

The president of Zhongzu Enterprise, Gu Zhongli, has just joined the ranks of global billionaires increasing their investments in AI, committing at least $100 million as the cornerstone for two funds. These funds will invest in companies that provide artificial intelligence infrastructure, including those collaborating with Nvidia. The two funds are managed by Zhongzu Holdings, supported by the Gu family assets, and Era, founded by Jasper Lau, with the goal of raising $1.5 billion from other ultra-high-net-worth individuals and institutions.

Gu Zhongli promises $100 million as a cornerstone for the AI fund

Gu Zhongli has committed to invest at least $100 million as the anchor funding for two funds launching this month, which will invest in artificial intelligence infrastructure companies, including those collaborating with NVIDIA. The Gu family confirmed that this billionaire is the anchor investor but did not disclose the amount of his investment. The role of an “Anchor Investor” is crucial in fundraising as it demonstrates confidence in the fund to other potential investors.

Zhongzu and Gu Zhongli each pledged to invest at least 50 million USD into the aforementioned fund, meaning that Gu Zhongli's personal commitment and Zhongzu Holdings' institutional commitment total 100 million USD. The fund primarily targets private credit allocations for AI infrastructure companies; however, the plan has not yet been finalized, and Gu Zhongli may invest more funds. This flexibility shows his strong interest in AI investment opportunities and ample financial strength.

These two funds are managed by Era, founded by Chungwa Leasing Holdings and Jasper Lau, with a goal of raising $1.5 billion from other ultra-high-net-worth individuals and institutions. The $1.5 billion target size is considered large within private equity funds, and this scale is sufficient to make multiple large investments, diversifying risk while maintaining influence over individual projects. From a fundraising strategy perspective, with a cornerstone investment of $100 million from Gu Zhongli, the confidence of other investors will be significantly boosted, increasing the likelihood of achieving the $1.5 billion target.

AI infrastructure companies cover a wide range of fields, from chip design, cloud computing, and data centers, to AI training frameworks and model optimization tools. The mention of “companies collaborating with Nvidia” indicates a clear investment direction for the fund. Nvidia is the absolute leader in the AI chip sector, and its GPUs are indispensable in AI training and inference. Companies collaborating with Nvidia may include cloud service providers (such as CoreWeave), AI application developers, and data center operators. These companies benefit from the AI boom, with rapid growth in revenue and valuation.

Gu Zhongli AI Investment Plan Key Points

Personal Commitment: At least 50 million dollars

Zhongzu Holdings Commitment: At least 50 million dollars

Total Cornerstone Investment: 100 million USD (may increase)

Fund's Overall Goal: Raise $1.5 billion from ultra-high-net-worth individuals and institutions.

Investment Direction: AI infrastructure companies, focusing on the Nvidia supply chain.

Taiwan's Koo Family Territory: From Salt and Sugar Trade to Financial Empire

The Gu family initially started their business with the trade of commodities such as salt and sugar, and later expanded into real estate, industry, and finance, including holding shares in China Trust Financial Holding Co., Ltd. and KGI Financial Holding Co., Ltd. According to the Bloomberg Billionaires Index, their total net worth amounts to at least 7 billion USD. This figure makes the Gu family one of the wealthiest families in Taiwan, alongside top tycoons like the Wang family of Formosa Plastics and the Tsai family of Fubon.

Gu Zhongli is the third son of Gu Liansong. His elder brothers are Gu Zhongliang and Gu Zhongying. In this family structure, the three brothers each have their own roles: Gu Zhongliang manages China CITIC Bank, which is one of the largest financial groups in Taiwan; Gu Zhongying focuses on industrial investments; and Gu Zhongli has long been in charge of China Rent Group. This division of labor allows the Gu family to develop simultaneously in various fields such as finance, industry, and investment, diversifying risks while expanding their influence.

The businesses under the Zhongzu Group include leasing, consumer finance, and tourism hotels. The leasing business is the foundation of Zhongzu, providing equipment financing leasing to help small and medium-sized enterprises reduce capital expenditure pressure. The consumer finance business serves individual clients, offering installment payments and credit loans. The tourism hotel business is a newer expansion, demonstrating Gu Zhongli's emphasis on diversification.

In recent years, Gu Zhongli has been actively visiting AI startups in Silicon Valley, focusing on emerging technologies such as humanoid robots and the digitization of medical insurance. This sensitivity to new technologies is the background for his decision to invest heavily in AI. For traditional financial institutions, AI is not only an investment opportunity but also a necessary tool for business transformation. Zhongzu can apply AI in areas such as credit assessment, risk management, and customer service to enhance operational efficiency and competitiveness.

From a strategic perspective, Gu Zhongli's investment in AI infrastructure rather than AI application layers demonstrates a profound understanding of the value chain. While AI applications are closer to consumers, the competition is fierce and the business models are unstable. In contrast, AI infrastructure such as chips, cloud computing, and data centers are essential for all AI applications, offering more stable revenue and higher barriers to entry. This strategy of “selling shovels” rather than “mining for gold” has historically proven to be more robust.

Era Fund and 30-Year-Old Investor Jasper Lau

Gu Zhongli has invested 50 million USD into the Era fund under his family office, which will invest in artificial intelligence infrastructure companies through the family office, seeking equity investments. The Era fund is managed by 30-year-old American investor Jasper Lau, who founded Era in 2022. According to informed sources, Jasper Lau also assists Gu Zhongli in managing investments.

30-year-old Jasper Lau has gained the trust of Gu Zhongli with a fortune of 7 billion dollars, demonstrating his exceptional abilities in the investment field. When Lau founded Era in 2022, he was only 27 years old, an age at which it is almost impossible to gain the opportunity to manage family office assets in traditional finance. However, in the fast-changing technology and cryptocurrency sectors, young investors often possess a sharper intuition and a more open mindset.

From an organizational structure perspective, Gu Zhongli adopted a “dual-track system” strategy. The $50 million investment by China Rental Holdings in private credit allocation is a relatively stable debt investment, with lower risk but also more fixed returns. The $50 million from the Era Fund seeks equity investment, which carries higher risk but could potentially yield returns multiple times or even tens of times the investment if successful. This combination balances risk and return, reflecting Gu Zhongli's prudence as an experienced investor.

Private credit allocation means that the fund will provide loans to AI infrastructure companies and receive interest as a return. The advantage of this investment method lies in the priority of repayment: if the company performs poorly, creditors are prioritized over equity investors for repayment. In the rapidly changing AI field, where many companies have unclear profit models, debt investment offers better downside protection.

Equity investment involves directly purchasing shares of an AI company and participating in its growth. If the invested company becomes the next unicorn or even goes public, equity investors will reap substantial returns. Jasper Lau, as the manager of the Era Fund, needs to select the most promising AI startups, which requires precise judgment of technological trends, market demand, and team capabilities.

Focusing on the Investment Logic of the Nvidia Ecosystem

The fund specifically mentioned investing in “companies collaborating with Nvidia,” reflecting a deep insight into the AI industry chain. Nvidia holds over 80% market share in the AI chip market, and nearly all major AI companies rely on Nvidia's GPUs for model training and inference. Companies collaborating with Nvidia can be categorized into several types:

The first type is cloud service providers. These companies purchase large quantities of Nvidia GPUs and rent them out to AI developers and enterprises. Companies like CoreWeave and Lambda Labs, which focus on GPU cloud services, have raised billions of dollars in funding over the past two years, with valuations rising rapidly. The business model of these companies is clear: purchase GPUs → rent to clients → collect rent, resulting in stable and predictable cash flow.

The second category is AI infrastructure software companies. These companies develop tools to optimize the utilization efficiency of NVIDIA GPUs, such as model parallelism, memory management, training acceleration, and more. NVIDIA itself is also promoting such tools to enhance the competitiveness of overall solutions in collaboration with its ecosystem partners.

The third category is data center operators. AI training requires a large number of GPUs concentrated in the same location, which places extremely high demands on the power, cooling, and networking of data centers. Data centers specifically designed for AI have become a new investment hotspot.

The fourth category is AI application developers. Although the fund mainly focuses on infrastructure, some application layer companies that have deep cooperation with Nvidia and receive technical support may also be included in the investment scope. These companies typically have clear business models in vertical fields, such as medical imaging AI, autonomous driving, and financial risk control.

From an investment return perspective, companies within the NVIDIA ecosystem have a “certainty premium.” They do not need to gamble on which AI framework will prevail or which model will become the standard, as the demand for GPUs and related infrastructure is certain regardless of the final landscape. This investment logic is akin to the saying “no matter who wins the gold rush, those selling shovels will definitely make money.”

The AI Transformation of Zhongzu and Family Office Strategy

For Chailease Holding, investing in AI infrastructure is not only a financial investment but also a strategic layout. The traditional financing leasing business faces challenges such as shrinking interest margins and rising bad debt risks, necessitating the enhancement of risk control capabilities and operational efficiency through AI technology. By investing in AI companies, Chailease can gain opportunities for technological collaboration and apply advanced AI tools to its own business.

The operating model of a family office is vividly reflected in this investment. Gu Zhongli makes personal investments through the Era Fund while also utilizing China Rental Holdings for institutional investments. This “individual + corporate” dual-track system maximizes investment flexibility. Personal investments can be more aggressive, pursuing high risk and high returns; corporate investments, on the other hand, need to consider financial stability and shareholder interests, making them relatively conservative.

Collaborating with 30-year-old Jasper Lau also demonstrates Gu Zhongli's emphasis on the new generation of investors. Traditional family offices are often managed by senior financial professionals, with a conservative investment style. However, in the rapidly changing technology sector, the networks, vision, and execution capabilities of young investors may have greater advantages. Lau founded Era at just 27 years old in 2022, and being able to earn Gu Zhongli's trust to manage tens of millions of dollars in assets within three years certainly speaks to his exceptional abilities.