Zhipu AI: World’s best open source AI celebrates successful IPO in Hong Kong
Knowledge Atlas Technology from Beijing, better known as Zhipu AI, has successfully completed its initial public offering in Hong Kong. The stock opened 3.3 percent above the issue price of 116.20 Hong Kong dollars and traded at around 126 Hong Kong dollars. The company raised approximately 558 million US dollars in the IPO. The company positions itself as one of the most prominent representatives of China’s AI offensive on the international stage.
Zhipu AI, which operates internationally under the brand Z.ai, has become particularly known for its GLM models. GLM-4.7 currently ranks among the top 20 AI models worldwide on LMArena, and is currently ranked as the world’s best open source model on Artificial Analysis – ahead of DeepSeek, OpenAI, and Kimi K2 from Moonshot AI.
Two Business Models for Different Customer Requirements
The company develops universally applicable large language models under the acronym GLM and offers these through two different deployment models. In the on-premise segment, Zhipu AI provides customized AI solutions that customers operate directly on their own infrastructure. The cloud-based segment enables access to the models via cloud infrastructure. The technology finds application in smart devices, the financial sector, manufacturing, retail, and healthcare – the primary market has so far been China itself.
Since its founding in 2019, the company has developed into a central player in Beijing’s strategy to establish Chinese-developed AI technology internationally. Rapid development has put Zhipu AI on the map of global tech observers and made the company a relevant player in the competition for AI dominance.
OpenAI Identifies Rapidly Growing Competitor
In June of last year, OpenAI explicitly highlighted the Chinese company as a rising rival – a recognition that underscores the significance of Zhipu AI in the global AI competition. The classification occurred in the context of China’s ambitions to establish its own AI technology as an alternative to Western providers. However, the company is on US sanctions lists, which blocks direct market access in the United States.
International expansion therefore focuses on other regions. Southeast Asia is the focus of the growth strategy – a market with high dynamism and fewer regulatory hurdles for Chinese tech providers. CEO Zheng Peng responds to OpenAI’s attention with equanimity and views international expansion as a natural business step.
The successful IPO provides Zhipu AI with fresh capital for planned regional expansion and further development of model development. With the Hong Kong listing, the company secures access to international capital while remaining anchored in Chinese legal jurisdiction – a strategic position in an increasingly fragmented global tech market.
