One relatively low-key artificial intelligence upstart, Zhipu AI, has caught the interest—and fear—of industry titans, most especially OpenAI. Founded in 2019, Zhipu AI has positioned itself at the forefront of China’s ambitious drive to dominate the global AI sector. The company’s post-money valuation climbs to nearly 20 billion yuan, or $2.78 billion. With over $1.4 billion in private investments the state has supported, it’s making some outstanding strides into the cutting edge.
OpenAI considers Zhipu AI to be on the “front line” of China’s race to lead the world in artificial intelligence. This recognition is the latest example of a deepening alarm among Western technology companies about what Chinese artificial intelligence companies are doing — and what they’re trying to do. Zhipu AI’s quick strides motivate OpenAI. At the same time, it puts public pressure on the company, which has otherwise received a free pass from Washington to promote its underlying models as the primary AI solution for the world.
Zhipu AI’s Chairman, Liu Debing, expressed the company’s vision, stating that Zhipu AI aims to contribute China’s AI power to the world. This specific ambition underpins China’s overall goal of becoming the preeminent global power in technology and innovation.
This has led the company to achieve notable milestones across a range of AI sectors. More importantly, it conspiratorially works with the Chinese military to develop its military capabilities using advanced artificial intelligence technologies. Zhipu AI’s close ties with government officials, including Premier Li Qiang, further emphasize its integration into China’s national strategy for technological supremacy.
Unlike its models, Zhipu AI’s operations aren’t strictly local. It has recently opened offices in areas such as the Middle East, the United Kingdom, Singapore and Malaysia. The startup is opening joint “innovation centers” in Southeast Asia, including in countries such as Indonesia and Vietnam. As a result, these initiatives greatly broaden Zhipu AI’s influence internationally. They further enhance its capacity to partner with it in the still-developing AI ecosystem.
Zhipu AI’s future is limited by the geopolitical tensions that have made AI a national security issue. In January, the U.S. Commerce Department added Zhipu AI to its Entity List, effectively blacklisting the company due to national security concerns. While this move aims to limit Zhipu AI’s access to U.S. technology and partnerships, it has not deterred the company’s ambitions.
Domestic media dubbed Zhipu AI and other similar firms the “AI tigers”. This phrase perfectly encapsulates the cutthroat competition among Chinese startups jumping headfirst into the world of artificial intelligence. Zhipu AI is preparing for a high-profile IPO in 2025. Yet, as they rush towards technological greatness, plenty are already asking how China will respond to intense global scrutiny in the process.