Zhipu AI, a leading Chinese artificial intelligence startup, has secured 500 million yuan ($69.04 million) in new funding from state-owned Huafa Group. This follows a 1-billion-yuan capital raise announced earlier this month, reflecting growing state-backed investment in China’s AI sector.
Huafa Group, a Zhuhai-based state conglomerate, confirmed its investment, as reported by Zhuhai Special Economic Zone Daily. The move aligns with Beijing’s push to accelerate domestic AI development amid global technology competition. Recently, Hangzhou City Investment Group backed DeepSeek, a rival AI firm, as local governments race to support emerging leaders in large language model (LLM) development.
Founded in 2019, Zhipu AI has attracted investment from Tencent, Meituan, and Xiaomi, securing over 15 funding rounds. The company, valued at 20 billion yuan ($2.76 billion) in July 2024, plans to use the new capital to advance its GLM foundation model and expand its AI ecosystem.
Zhipu AI was added to the U.S. Commerce Department’s export control list in January, restricting access to U.S. technology. Despite these challenges, the company continues to strengthen its position as one of China’s leading AI innovators.
