Chinese AI startup Zhipu AI has raised 300 million yuan ($41.5 million) in financing for a Chengdu government-backed fund, marking the latest step in China’s push to support domestic AI development. This investment is part of a broader strategy by Chinese cities to boost AI innovation and compete with the U.S. tech industry.
Earlier this month, Zhipu AI secured additional funds, including 500 million yuan from Zhuhai’s state-owned Huafa Group and participation in a 1 billion yuan funding round with Hangzhou City Investment Group Industrial Fund. These investments come amid growing interest in China’s AI sector, as rivals like DeepSeek gain attention for their cost-effective large language models that rival Western competitors.
Founded in 2019, Zhipu AI, one of China’s prominent “AI tigers,” has attracted significant backing from tech giants like Tencent, Meituan, and Xiaomi. According to the business registration platform Qichacha, the startup has completed over 15 funding rounds with a valuation of 20 billion yuan in July 2024.
With this latest funding, Zhipu will collaborate with Chengdu to develop a regional AI model for Sichuan province called “Zhipu Zhuge.” According to Beijing News, the partnership will also focus on building AI infrastructure, including a model training center and a research facility in the city.
