“Zhipu AI is charging ahead with $140 million in fresh funding, backed by tech giants and state investors, as it aims to rival global AI leaders like OpenAI and Meta.”
Chinese AI startup Zhipu has successfully raised over 1 billion yuan (around $140 million) in a new funding round. State-backed investors led this round, with key contributions from Hangzhou Municipal Construction Investment Group Co. and Shangcheng Capital, both linked to the Hangzhou government. Existing investors like Alibaba Group Holding Ltd. and Tencent Holdings Ltd. also joined in.
With this fresh funding, Zhipu’s valuation has reached approximately $3 billion. This shows growing confidence in its AI capabilities as it competes with major U.S. tech companies like OpenAI and Meta Platforms Inc. Zhipu shared news about its new investors on its official WeChat account but did not reveal specific financial details. The funds will help the company improve its AI models and expand its reach in both local and global markets.
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Zhipu’s Valuation Soars to $3 Billion Amid AI Boom
This investment comes at a time when China’s AI sector is booming, especially after DeepSeek launched its advanced AI model in January. DeepSeek’s rapid growth has increased competition among Chinese tech firms, pushing giants like Alibaba and Baidu Inc. to speed up the development of their own large-language models.
Zhipu has announced plans to release new AI models this year and make them open-source. This move is seen as a strategic step to grow its influence and attract more developers.
Earlier this year, the U.S. Commerce Department added Zhipu to its trade-restriction list, which could limit its access to advanced U.S. technologies. However, Zhipu has denied any military connections and insists it follows international regulations.
Industry experts believe Zhipu is well-equipped to handle these challenges, thanks to support from Alibaba, Tencent, and the government. The financial backing and cloud computing resources from its investors are expected to strengthen its position in the AI race.
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A tech analyst told Investors King, “With Alibaba and Tencent supporting it, Zhipu has the money and technology to compete strongly in the AI sector. The state funding also highlights China’s focus on becoming technologically self-reliant.”
