Sept 28 (Reuters) - China's artificial intelligence (AI) chip startup Enflame, backed by tech giant Tencent, on Thursday said it raised 20 billion yuan ($2.74 billion) from investors including funds linked to a government authority in Shanghai. The deal came as the development of generative AI, boosted by the success of OpenAI's ChatGPT, raises investor interest in companies working on AI-related infrastructure such as AI chips. Enflame said the latest fundraising was co-led by investors including a few funds backed by Shanghai International Group, which is under the control of the state asset regulating authority in the municipality of Shanghai. Tencent, which has cooperated with Enflame in developing an AI chip named Zixiao and contributed to the startup's earlier fundraising, also participated in the latest investment round, according to a statement by Enflame. ($1 = 7.3103 Chinese yuan)Reporting by Roxanne Liu and Kane Wu; Editing by Michael PerryOur Standards: The Thomson Reuters Trust Principles.

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Persons: OpenAI's, Enflame, Roxanne Liu, Kane Wu, Michael Perry Organizations: Shanghai International Group, Enflame, Thomson Locations: Shanghai