Purpose: The global COVID-19 epidemic has posed significant challenges to the development of innovation and entrepreneurship education in Chinese and foreign universities, and the application of artificial intelligence generated content (AIGC) technology has presented both opportunities and challenges to its development. The purpose of this study is to summarize advanced experiences and models of new engineering innovation and entrepreneurship education development in Chinese and foreign universities, as well as to analyze the influencing factors. Taking the sustainable development goals (SDGs) into account, this study qualitatively proposes enhancement paths and improvement suggestions based on the application of AIGC technology, providing a reference for promoting the sustainable development (SD) of innovation and entrepreneurship education in Chinese universities. Design/methodology/approach: By using the qualitative comparative analysis (QCA), this paper studies the interaction mechanism between the influencing factors of innovation and entrepreneurship in universities under the background of SDGs. This paper selects 12 representative universities with different cultures and strengths. Meanwhile, this paper analyzes the content of 2,535 publications on innovation and entrepreneurship education and summarizes seven influencing factors as comparison criteria. Then, this paper codes, summarizes and uses configuration to assess the primary factors influencing the development of innovation and entrepreneurship in colleges and universities at home and abroad. Findings: On the quality of new engineering innovation and entrepreneurship education, comprehensive, diverse influencing factors and upgrading paths are obtained. Furthermore, this research proposes that the SD of innovation and entrepreneurship education in universities should make effective use of "AI plus education" and actively construct practical and teaching platforms. Meanwhile, the ChatGPT is being used to strengthen the innovation and entrepreneurship curricular system and talent training mode. The research also makes recommendations for improving teachers' ability to acquire intelligent tools and promotes three-way teaching modalities of "teacher-AI-student" by taking into account the influence of various aspects. Originality/value: This research uses the QCA research method, which analyzes not only influencing factors on the SD of innovation and entrepreneurship education but also explores the interaction mechanisms among factors. Furthermore, the research incorporates SDGs and AIGC technology application scenarios into the field of domestic innovation and entrepreneurship education, which will be helpful in SDGs of innovation and entrepreneurship education on both theoretical and practical levels.