Chinese AI startup Zhipu AI has raised 3 billion yuan (approximately $412 million) in a new funding round, as it positions itself to compete more effectively in the rapidly growing and crowded artificial intelligence market.
With backing from major investors including Alibaba, Tencent, and a range of prominent venture capital funds, Zhipu aims to strengthen its capabilities in both consumer and enterprise AI applications. This latest injection of capital marks the fourth funding round for the company this year, underscoring its growing influence in the AI sector.
Beijing-based unicorn Zhipu, one of China’s leading large language model (LLM) startups, secured a foreign investment earlier this year from Saudi Arabia’s Prosperity7 Ventures, the venture capital arm of Aramco, in its latest $400 million fundraising round.
Key Highlights
- Zhipu AI raises $412 million in new funding amid growing competition in China’s AI market.
- The funding will enhance Zhipu’s AI models and expand its services, including multi-modal task handling and AI agents.
- Zhipu has doubled its revenue year-on-year, with strong growth in both enterprise and consumer sectors.
- The company’s ChatGLM chatbot and AutoGLM AI agent have gained significant traction in the market.
Zhipu AI has reported impressive growth, having more than doubled its revenue year-on-year in the 11 months leading up to November 2024, although specific figures were not disclosed. The funding is a testament to the company’s rapid expansion and the increasing demand for its AI-powered solutions.
Competing in the crowded AI Market
Zhipu’s new funding comes amid increasing competition in the AI landscape. The Chinese startup is focusing on building sophisticated AI models to compete with global players like OpenAI. As part of its expansion, Zhipu has worked to improve its application programming interface (API) offerings, enabling third-party companies to build AI applications. The company’s API services have seen significant demand, driven by a price reduction earlier this year, which resulted in a more than 30-fold increase in revenue for its MaaS platform.
The new funding will be used to develop Zhipu’s core AI models further and expand its services. This includes advancing from simple question-answering capabilities to handling more complex, multi-modal tasks. Zhipu also plans to integrate its AI offerings across a range of business operations, from e-commerce to customer service, to meet the growing demand for AI-driven solutions.
Key Offerings: ChatGLM and AutoGLM
Zhipu has successfully developed a range of products, including its ChatGLM chatbot, one of the most popular in China, and its AutoGLM AI agent, a tool designed to automate complex tasks across multiple applications.
Zhipu’s flagship product, the ChatGLM chatbot, has been a significant player in China’s AI chatbot market. The app is capable of performing tasks such as summarizing articles, generating marketing content, and creating multimedia elements like images and videos. It currently charges users a monthly premium fee of 39 yuan for full access to its features, with a free version also available.
ChatGLM ranked fourth among China’s chatbot apps last month, with 6.4 million monthly active users, trailing behind Doubao, Wenxiaoyan, and Kimi, according to Aicpb.com.
Another promising product, the AutoGLM AI agent, was launched in late October and is designed to operate smartphones on behalf of users. This app can execute voice commands to carry out tasks such as retrieving purchase records from e-commerce apps or placing orders at local cafes. The AutoGLM app is expected to be a major contributor to the company’s future growth, as the demand for AI agents in business applications rises.
Zhipu’s future prospects look promising, as it continues to innovate and strengthen its market position. With the $412 million funding, Zhipu is poised to expand its product offerings and continue developing cutting-edge AI technology. The company’s ability to capture market share in the AI sector will be crucial as it competes with global giants and local challengers alike.
