(Yicai Global) Oct. 12 -- Chinese training and education provider New Oriental Education & Technology Group Inc. [NYSE:EDU] will set up a CNY2-billion (USD300-million) education industry fund focused on venture capital deals and a CNY10-billion (USD1.5-billion) mergers and acquisitions fund as part of its consolidation efforts in the sector, online news outlet Lieyunwang reported yesterday.

China could have some 100 education firms each worth CNY10 billion in future and a set of 10 to 20 companies worth CNY65 billion each, said Yu Minhong, founder of the company.

In the era of artificial intelligence, education is the fastest-growing sector in terms of investment, he added. One-third of AI technologies may be applicable to the industry in the future.

Yu and 15 investment institutions, including Sequoia Capital China, IDG Capital and New Oriental's investment unit, formed the Zhumeng Education & Culture Industry Investment Alliance yesterday to optimize resource allocation globally and help Chinese firms establish a presence in the worldwide education sector.