Alibaba-Backed AI Startup Zhipu Sets Sights on IPO by 2025
Zhipu, an innovative AI startup backed by Alibaba Group Holding and Tencent Holdings, is making significant strides toward achieving an initial public offering (IPO) potentially as early as this year. The company has enlisted China International Capital Corporation (CICC) to lead the charge in this ambitious endeavor.
This six-year-old AI firm and CICC have commenced the preparations needed for the debut, aiming to formally apply to list by October, based on IPO documents submitted to China’s stock market watchdog. Zhipu has become a pivotal player among Chinese startups aiming to challenge OpenAI on a global scale. Amid rapid development, it emerges as a frontrunner in offering low-cost AI services, competing with rivals like DeepSeek, Moonshot, and Minimax.
In March, Zhipu successfully closed a significant financing round worth one billion yuan (approximately $346 million), a move led by local government-backed firms. This financial boost highlights Beijing’s escalating interest in artificial intelligence, especially following the ascent of platforms like DeepSeek. Nonetheless, Zhipu faced challenges, such as being added to a trade-restrictions blacklist by the US Commerce Department earlier this year. Despite these hurdles, the company firmly denies any alleged military connections.
The exact timing for Zhipu’s IPO remains uncertain, especially as the global market grapples with trade and financial volatility. Many industry dealmakers remain cautious in this fluctuating market environment. However, for AI startups eager to sustain the brisk pace of investment and research, securing capital is crucial. Chinese tech companies are in a race to develop affordable AI products, inspired by economical models recently introduced by DeepSeek.
AI agents capable of undertaking tasks for users are a hotbed of research and development, with startups striving to lead advancements in this burgeoning field. Zhipu, headquartered in Beijing, recently showcased its new AI agent, AutoGLM, focusing on deep research. During a recent presentation, Zhipu’s CEO Zhang Peng highlighted that AutoGLM outperformed models such as OpenAI’s GPT-4o and Anthropic’s Claude 3.5 Sonnet when tested via web browsers. In a bid to enhance accessibility, Zhipu also released another open-source model under its GLM series on Tuesday, promising significantly lower costs for users compared to DeepSeek’s R1.
The competitive landscape for AI is intensifying. Not all companies may withstand the growing competition. According to Chinese entrepreneur Kai-Fu Lee, only a few AI models may emerge victorious in a looming domestic shakeup.
As the AI industry continues to evolve, Zhipu is positioning itself as a key player ready to make waves. With significant backing and capital injections, it aims to carve out a lasting presence in the global AI market and potentially lead innovations in cost-effective AI solutions. The journey to IPO will be one to watch, as Zhipu navigates through challenges and opportunities in this dynamic sector.
