BEIJING – Zhipu AI, a Chinese artificial intelligence startup, has raised 300 million yuan ($41.5 million) from a government-supported fund in Chengdu, as reported by the Beijing News on Wednesday. This investment is part of a broader initiative by Chinese cities to bolster domestic AI development.
The funding from the Chengdu Hi-Tech Industrial Development Zone follows two recent funding rounds for Zhipu, which involved various local governments this month, reflecting an increased effort to support AI companies amid growing competition with the United States.
Last week, the Beijing-based startup Zhipu also received 500 million yuan from the state-owned Huafa Group in Zhuhai, and earlier this month, the Hangzhou City Investment Group Industrial Fund participated in a separate funding round totaling 1 billion yuan.
This surge in state-backed investments comes as domestic competitor DeepSeek gains traction in China’s AI landscape, with its large language models performing on par with Western counterparts at reduced costs.
Founded in 2019 and recognized as one of China’s “AI tigers,” Zhipu AI has garnered investments from major tech firms like Tencent, Meituan, and Xiaomi, participating in over 15 funding rounds, according to the business registration platform Qichacha. The company was valued at 20 billion yuan during a funding round in July 2024.
With the latest investment, Zhipu plans to collaborate with Chengdu to create a regional AI model for Sichuan province, named “Zhipu Zhuge,” and to establish AI infrastructure, including a model training center and research facility in the city, as reported by Beijing News.
In January, Zhipu and its subsidiaries were placed on the U.S. Commerce Department’s export control entity list, restricting their ability to acquire U.S. components.
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