Zhipu AI Soars in Hong Kong Debut as China's First 'AI Tiger' Goes Public

Zhipu AI, known as Knowledge Atlas Technology JSC, made a strong debut on the Hong Kong stock exchange, marking a significant milestone as the first of China's 'AI tigers' to go public. The company's shares rose as much as 15% above the offer price on its first day of trading, valuing the Beijing-based startup at approximately HK$4.3 billion (USD 558 million). This listing not only highlights Zhipu's ambition but also underscores China's growing influence in the global AI landscape.

Founded in 2019 by researchers from a top Chinese university, Zhipu has quickly established itself as a leader in large language model (LLM) development. Its IPO comes amid a wave of listings by AI chipmakers and other tech innovators in China, reflecting the country's commitment to advancing its AI capabilities.

The Road to IPO

Zhipu's journey to its Hong Kong debut has been marked by both achievements and challenges. The company, strongly backed by Beijing, has been positioned as a key player in China's AI strategy. Despite facing U.S. restrictions, including being placed on the U.S. Commerce Department's Entity List in January 2023, Zhipu has continued to push forward.

The firm's ability to train its AI models has been constrained by U.S. restrictions on access to advanced semiconductor technology and expertise. However, Zhipu has demonstrated resilience, expanding its operations with offices in the United Kingdom, Singapore, Malaysia, and across the Middle East. It also operates joint innovation centers in Southeast Asia, including in Indonesia and Vietnam.

Competitive Landscape

Zhipu is part of a group of Chinese AI startups known as 'AI tigers,' which include competitors like DeepSeek. These companies are building large language models to rival global giants like OpenAI and Anthropic. While not as well known globally as some of its peers, Zhipu gained attention when OpenAI highlighted its progress as a competitor in China's AI race.

The firm reported revenue of 312.4 million yuan in 2024 and plans to use 70% of its IPO proceeds toward research and development of its general-purpose large AI models. This investment underscores Zhipu's commitment to innovation and its ambition to lead in the AI sector.

Rival Chinese AI startup MiniMax is also expected to launch its own offering, following a confidential filing last year. This move signals a competitive environment among Chinese AI firms, as they race to establish themselves as global leaders in the industry.

Zhipu's public listing is a testament to China's growing AI ambitions and its determination to compete on the global stage. As the first of the 'AI tigers' to go public, Zhipu sets a precedent for other Chinese AI companies aiming to follow suit.