China's Zhipu AI Raises $137 Million as State Funds Bet on AI Race

China's Zhipu AI, a leading player in the global artificial intelligence (AI) landscape, has secured $137 million in its latest funding round, according to a report by 36kr. The investment, led by state-backed funds, underscores the Chinese government's commitment to the AI sector and its ambition to lead the global AI race.
Zhipu AI, founded in 2022 by professors Tang Jie and li Juanzi at Tsinghua University Science Park, has quickly established itself as a major competitor to global AI giants such as OpenAI and Google DeepMind. The company's latest funding round, which included participation from several strategic investors and state-owned enterprises, brings its valuation to over $2 billion.
The funds raised will be used to advance the company's base model, expanding its capabilities from simple question answering to handling complex, multi-modal tasks. In 2024, Zhipu AI reported a surge in commercial revenue, achieving more than 100% growth. On the enterprise side, its MaaS platform, , API, experienced a more than 30-fold year-on-year increase in revenue after API prices were significantly lowered. On the consumer front, the company's conversational AI model, Qingyan, launched in the third quarter of 2024, is expected to generate more than 10 million yuan in annual revenue, with the platform already amassing over 25 million users.
Zhipu AI's rapid growth and success can be attributed to several strategic advantages it offers to its investors, particularly state-backed funds, in the global AI race. These advantages include technological leadership, rapid growth and revenue generation, strong investor backing, talent and expertise, global ambitions, and potential for high returns. By investing in Zhipu AI, state-backed funds can leverage these advantages to gain a competitive edge in the global AI race.
In conclusion, China's Zhipu AI has raised $137 million in its latest funding round, with state-backed funds betting on the company's potential to lead the global AI race. The investment highlights the Chinese government's commitment to the AI sector and its ambition to establish itself as a global AI leader. Zhipu AI's strategic advantages, including technological leadership, rapid growth, and strong investor backing, position it as a strong contender in the global AI landscape.