**[Serenity: Capital in China's Primary Market is Flowing Toward Physical AI and World Models, Frontier Model Financing Concentrates on Leading Companies]** BlockBeats News, July 3 — Serenity published an article stating that, based on AI investment trends in China's primary market, institutional capital is flowing toward embodied intelligence, physical AI, and world models. It outlined that the financing scale for large models/LLMs is approximately $23.56 billion, AI infrastructure and technology layers around $15.74 billion, embodied intelligence/physical AI about $13.36 billion, AIGC applications around $8.79 billion, and autonomous driving and other Top-20 clusters approximately $3.82 billion. However, this category is not entirely comparable to the aforementioned ones. Early-stage pure foundational model financing has largely closed, with more capital flowing toward established leading enterprises and world model companies. Serenity believes that the U.S. market may exhibit a similar trend, with capital concentrating on leading companies such as Anthropic and OpenAI. "World models have become the biggest consensus in early-stage investments," it stated. Several months ago, Serenity predicted that 4D AI/world models would be the most noteworthy direction moving forward and mentioned that AEVA might provide relevant exposure. However, the market currently lacks clear pure-play targets, and it may be necessary to wait for the next batch of IPOs in this field. Serenity also noted that AIGC applications represent the most mature area of AI technology commercialization, but there is no clear winner yet. Capital continues to flow into AI infrastructure and the semiconductor supply chain, while significant investments are rotating into physical AI, embodied intelligence, humanoid robots, and world models. Meanwhile, the frontier model domain continues to concentrate on leading companies. [Original Link]