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Zhipu AI announces second price cut in a month, CEO says “not a simple price war.” Credit: Zhipu AI
Chinese AI startup Zhipu announced today that it has raised over RMB 1 billion ($140 million) in a new strategic funding round. Investors include Hangzhou government-backed firms, with the funds aimed at advancing Zhipu’s domestically developed GLM foundation model and expanding its AI ecosystem.
The latest round of investment in Zhipu comes less than three months after the company secured RMB 3 billion ($41.1 million) in funding on Dec. 17, 2024. It also marks the first funding round this year among China’s so-called “six AI tigers,” a group of emerging large-model startups.
Hangzhou City Investment Industry Fund, one of the investors, was established on June 30, 2023, with a registered capital of RMB 10 billion ($1.37 billion). As an industrial investment fund under Hangzhou City Investment, it focuses on promoting industrial growth and urban development through capital investment. The funding reflects Hangzhou’s deepening commitment to AI, aligning with the city’s recently released 2025-2026 Future Industry Development Action Plan, which outlines its strategic goals for the sector. [Zhipu WeChat account, in Chinese]
