Chinese startup Zhipu AI raises $137 million to boost AI models
Zhipu AI raises $137 million amid fierce AI competition
Chinese AI startup Zhipu AI has secured more than 1 billion yuan ($137.22 million) in fresh funding, just months after raising 3 billion yuan ($412 million) in December.
The new round was led by state-backed investors, including Hangzhou City Investment Group Industrial Fund and Shangcheng Capital, the company announced Monday via WeChat, reports Reuters.
The Beijing-based firm plans to use the funds to advance its GLM (General Language Model) capabilities and grow its AI ecosystem, with a specific focus on serving businesses in Zhejiang province and the Yangtze River Delta economic zone.
Rising Competition in China’s AI Sector
Zhipu AI’s fundraising comes amid increasing competition in China’s AI landscape, particularly following the rise of rival DeepSeek. DeepSeek has gained attention for developing large language models (LLMs) that reportedly rival Western counterparts like OpenAI, while operating at a lower cost.
Founded in 2019 and known as one of China’s “AI tigers,” Zhipu AI has now completed 16 funding rounds, according to business registration platform Qichacha. The company’s rapid funding acceleration highlights the growing investor appetite for AI technologies as China seeks to strengthen its position in the global AI race.
Future Plans and Market Outlook
Zhipu AI also announced plans to release a suite of new open-source AI models, including foundation models, inference models, multimodal systems, and AI agents. This strategy could help the company position itself as a key player in China’s AI sector while countering the market disruption posed by DeepSeek’s open-source innovations.
As competition heats up, Zhipu AI’s ability to scale its models and expand its AI ecosystem will be critical in determining its future market position both domestically and internationally.
Reminder, SymbyAI, a SaaS platform designed to streamline scientific research with artificial intelligence, announced a $2.1 million seed round led by Drive Capital and CharacterVC.
