Chinese AI unicorn Zhipu adds Beijing, Shenzhen government funds as shareholders

The latest funding reflects how Chinese AI-related enterprises continue to attract new investment, despite US tech restrictions

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Zhipu AI chief executive Zhang Peng speaks at an event in Beijing on June 5, 2024. Photo: Handout

Published: 9:00pm, 4 Nov 2024

Funds controlled by the municipal governments of Beijing and Shenzhen have acquired stakes in Zhipu AI, one of the country’s so-called artificial intelligence (AI) “tigers”, providing more resources for the start-up to compete with US peers like ChatGPT creator OpenAI.

On November 1, the Beijing Artificial Intelligence Industry Investment Fund – which previously invested an undisclosed amount in the start-up in March, according to local media reports – injected 465,090 yuan (US$65,288) in fresh capital to gain a 1.49 per cent stake in Zhipu AI, according to records on Chinese corporate database Qichacha.

Zhipu AI on the same day also received investments from funds controlled by the local governments of southern tech hub Shenzhen and central Hubei province, which boosted the firm’s registered capital to about 31.07 million yuan from 27.91 million yuan, Qichacha data showed.

Beijing-based Zhipu AI did not immediately respond to a request for comment on Monday.

The latest funding raised by Zhipu AI reflects how Chinese AI-related enterprises continue to attract new investment, despite Washington’s moves to prevent Beijing from pursuing advances in the technology.

People seen in front of the Zhipu AI exhibition space during the World Artificial Intelligence Conference in Shanghai in July this year. Photo: Handout

Major investors in Zhipu AI include Alibaba Group Holding, Tencent Holdings, Meituan, GL Ventures and Legend Capital. Alibaba owns the South China Morning Post.