There’s a new AI firm, Zhipu AI, that’s really shaking things up. It started in Beijing in 2019 and quickly got the government’s attention. Now, people around the world are watching because this company wants to challenge American tech power. To use AI effectively, companies like Zhipu are demonstrating how strategic investment and rapid development can create major global players.
People call Zhipu AI one of China’s “AI tigers.” It got more than $1.4 billion from local Chinese governments, reports say. Its leadership often meets with important people like Premier Li Qiang from the Chinese Communist Party. This backing allows Zhipu to establish offices in locations such as the Middle East, the UK, Singapore, and Malaysia. Additionally, Indonesia and Vietnam are also gaining “innovation centers” through this initiative.
Zhipu is helping China’s “Digital Silk Road” plan grow, pushing its AI into new countries ahead of the U.S. Zhipu says its AI is safe, clear and ready for checks. It teams up with Huawei, a big Chinese tech company, to give AI tools and hardware to countries like Malaysia, Singapore, UAE, Saudi Arabia, and Kenya. These efforts highlight AI’s benefits, such as improving efficiency in industries like logistics and education in these regions.
OpenAI, a top U.S. AI company, talks about Zhipu’s moves in a new report. It says Zhipu’s efforts could lock Chinese tech standards into developing regions, challenging Western companies. OpenAI warns that China’s AI goals need watching to keep AI scam free, fair and open.
Even though the U.S. put Zhipu on a no-trade list in January 2025 for working with China’s military to upgrade with AI, Zhipu keeps going. It’s planning an initial public offering (IPO), and local news says it’s worth 20 billion yuan, or about $2.78 billion.
Zhipu showed off a new AI tool called AutoGLM Rumination. It can do deep research, search the web, and plan trips, proving Zhipu can compete with the best. This tool is one of the AI examples demonstrating how Chinese AI can handle complex tasks, such as generating travel itineraries or conducting market analysis with AI prompting techniques to refine outputs for accuracy.
Meanwhile, OpenAI is pushing forward with ambitious plans. A significant tech development occurred in May, when U.S. President Donald Trump revealed $200 billion in contracts with the United Arab Emirates. Among these is the Stargate AI campus, a 2026 project involving Oracle, Nvidia, Cisco, and Abu Dhabi’s MGX. The Stargate Project, worth $500 billion, started this year with MGX and Japan’s SoftBank to grow U.S. AI power. OpenAI also got a $200 million deal with the US. Defense Department and started “OpenAI for Government” to bring AI to U.S. workers. Plus, its “OpenAI for Countries” helps other nations build their own AI.
The U.S. and China are both racing ahead with AI. They’re investing lots of money, making partnerships, and using political support to win. Zhipu AI is one of China’s fastest-growing tech stars, but who will come out on top? That remains to be seen.
