Chinese AI startup Zhipu has raised over 1 billion yuan ($140 million) in a new funding round led by government-backed firms. This investment highlights the growing interest in China’s AI industry, especially after DeepSeek’s rise.
The funding came from Hangzhou Municipal Construction Investment Group and Shangcheng Capital, both controlled by Hangzhou’s government. Alibaba and Tencent, existing investors, also participated. Zhipu, valued at $3 billion in May 2024, shared this update on WeChat but did not provide more details.
DeepSeek has boosted China’s AI industry after launching a powerful AI model in January, competing with top Western models at a lower cost. This has pushed companies like Alibaba and Baidu to speed up their AI development. Baidu even plans to raise 10 billion yuan through offshore bonds.
However, Zhipu faces challenges. The US added the company to a trade-restrictions list in January, limiting its access to key technology. Zhipu denies any ties to the Chinese military.
Despite this, Zhipu remains focused on AI innovation. “We will launch new models this year and make them open-source,” the company said in its WeChat statement.
Source: gulfnews
