Thematic Spotlight: Alibaba-backed Startup Zhipu AI Eyes 2025 IPO

Alibaba-backed Zhipu AI is preparing for an IPO as early as 2025, potentially becoming the first Chinese ChatGPT competitor to go public.1 The Beijing-based firm has tapped China International Capital Corp. to lead the listing, with formal filings expected later this year. The move highlights not only Zhipu’s rapid rise but China’s broader push to cement its position in the global AI race.

Zhipu’s momentum comes amid an AI boom driven by efficiency and affordability. Its new AI agent, AutoGLM, is free to use and has reportedly outperformed OpenAI’s GPT-4o and Anthropic’s Claude 3.5 Sonnet in browser-based tests.2 Built on consumer-grade GPUs, it claims eight times faster inference speed at just 1/30th the cost of DeepSeek’s R1—China’s current benchmark model.

These advancements are part of a national strategic shift. While US firms like OpenAI and Google focus on premium, closed models, Chinese developers are leaning into open-source, low-cost alternatives, rapidly iterating to gain market share and lower barriers to adoption. Zhipu has also pledged to help Belt and Road Initiative countries build sovereign AI systems, signalling ambitions that stretch beyond domestic competition.3

Still, Zhipu faces geopolitical headwinds. The firm was blacklisted by the U.S. Commerce Department earlier this year, accused of ties to China’s military.4 The company denies the claims and says the restrictions will not materially affect its operations, particularly as local funding and government support grow stronger.

Zhipu’s IPO plans mark a pivotal moment in the US-China AI rivalry. As Chinese firms gain technical ground and begin entering global capital markets, AI leadership is evolving into a high-stakes contest of innovation, access, and influence.

Access Artificial Intelligence with GXAI.

Looking for more ETF Express? Check out this week’s Market Moves and Commodity Calls.