YZi Labs, owned by Changpeng Zhao and Yi He, has allocated most of the $11 million in seed funding to VideoTutor, a startup that uses artificial intelligence to teach. This investment marks the office’s first foray into the AI sector, signaling a new direction for part of the capital previously concentrated in cryptocurrencies.
The funding round was led by YZi Labs, with additional participation from funds linked to ByteDance and Baidu, according to the announcement. VideoTutor, founded by 20-year-old Kai Zhao, processes text, questions, or screenshots using a large language model (LLM) together with the Manim animation library to produce personalized educational videos.
This investment comes a few days after the office changed its name on January 23, 2025, announcing it would follow its own capital policy. Public statements place roughly ten billion dollars under its management, in addition to a separate one-billion-dollar fund (Builder Fund) intended to support projects on the BNB Chain. CZ indicated that the office will not accept external partners, with him and Yi He retaining full control under the motto “impact first”.
A new direction for crypto capital
This move reflects a significant shift in investment direction. The ten billion dollars are now leaning toward concrete AI applications, while the separate one-billion fund continues to fuel Web3 projects through the Builder Fund. The backing of VideoTutor sends a message to teams on the BNB Chain about possible reorientations in grant lists.
As an immediate challenge, VideoTutor will have to demonstrate both the quality of its clips and acceptance by educational institutions, complying with student privacy regulations and content accuracy. This investment consolidates YZi Labs’ first direct bet on AI, aligning with its new brand revealed in January.
