Knowledge Atlas Technology JSC, publicly known as Zhipu, saw its shares climb modestly in their Hong Kong debut. This marks the first listing among China’s burgeoning “AI tigers,” following a substantial $558 million initial public offering.
The Beijing-based startup’s stock opened approximately 10% above its offering price of 116.20 Hong Kong Dollars (about $15) on Thursday, with a total of 37.4 million shares made available. This IPO values Zhipu at an estimated HK$4.3 billion, positioning it as a significant player among recent artificial intelligence public offerings.
Established in 2019 by researchers from a leading Chinese university, Zhipu stands as the first major Chinese large language model (LLM) company to pursue an IPO. This milestone underscores the rapid advancement of China’s artificial intelligence sector, building on a wave of recent listings by AI chip manufacturers.
Zhipu is recognized as one of China’s “AI tigers,” a group of domestic startups developing large language models aimed at competing with global leaders such as OpenAI and Anthropic. Other prominent companies in this category include DeepSeek, which garnered significant market attention last year with the release of one of its LLMs.
Although perhaps not as globally recognized as DeepSeek, Zhipu gained prominence when OpenAI itself acknowledged its notable progress as a formidable competitor in China’s AI development race. The company’s global ambitions are evident in its reported expansion, with offices in the United Kingdom, Singapore, Malaysia, and across the Middle East, alongside joint “innovation centers” in Southeast Asian nations like Indonesia and Vietnam.
Zhipu’s trajectory has proceeded even after its placement on the U.S. Commerce Department’s Entity List in January of last year, stemming from U.S. officials’ claims of its collaboration with China’s military. Furthermore, the firm’s capacity to train its AI models has been impacted by U.S. restrictions on access to advanced semiconductor technology and expertise.
According to Zhipu’s prospectus, a significant portion of the IPO proceeds, specifically 70%, is earmarked for the research and development of its general-purpose large AI models. The company reported revenue of 312.4 million yuan in 2024.
In related news, fellow Chinese AI startup MiniMax is anticipated to launch its own offering on Friday, following a confidential filing submitted last year.
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