Zhipu AI's Multi-Million Dollar Boost in China's Tech Race

Chinese AI startup Zhipu AI has secured 500 million yuan in funding from state-owned Huafa Group, soon after a billion-yuan capital raise. With investment from major cities like Hangzhou, Zhipu aims to enhance its GLM model. It faces export restrictions from the U.S. Commerce Department.

Chinese AI startup Zhipu AI has received a significant financial injection of 500 million yuan, equivalent to $69.04 million, from the state-owned Huafa Group. This comes on the heels of announcing a massive 1 billion yuan capital raise just a week earlier.

The investment marks Huafa Group's commitment to supporting emerging AI talent, as cities across China vie to back top startups in a sector that Beijing sees as pivotal in its technological competition with the United States. Recently, Hangzhou's City Investment Group also made headlines by investing in rival AI firm DeepSeek.

Zhipu AI, founded in 2019 and recognized as one of China's "AI tigers," has accumulated substantial backing from tech giants like Tencent, Meituan, and Xiaomi. The company plans to channel the new funds into expanding its GLM foundation model, despite being listed on the U.S. Commerce Department's export control list, limiting its access to American components.

(With inputs from agencies.)