Shares of Knowledge Atlas Technology JSC, widely recognized as Zhipu AI, experienced a significant surge, climbing as much as 35% on Wednesday. This upward trajectory followed the release of the Beijing-based company’s inaugural earnings report, which showcased robust revenue growth. While the gains moderated in afternoon trading, Zhipu AI’s stock remained approximately 30% higher.
Zhipu AI, which made its debut on the Hong Kong Stock Exchange in January with a $558 million initial public offering, holds the distinction of being one of the first major pure-play AI model companies globally, and certainly in China, to go public.
In its earnings statement released Tuesday, Zhipu AI reported a revenue increase of approximately 132% to 724 million yuan for fiscal year 2025, compared to the preceding year. This figure, however, fell slightly short of the mean analyst estimate of 760 million yuan. The company also reported a net adjusted loss of 3.18 billion yuan, marking a 29.1% increase year-over-year, primarily driven by escalated research and development expenditures.
Founded in 2019 by researchers hailing from Tsinghua University, Zhipu AI recently unveiled its advanced GLM-5 model. The company claims this latest iteration matches key performance metrics of its U.S. counterparts. As a prominent entity within China’s AI landscape, often referred to as an “AI tiger,” Zhipu AI’s performance is closely scrutinized as a barometer for the nation’s broader ambitions in artificial intelligence, particularly in its race to compete with global leaders like OpenAI and Anthropic.
During an earnings call, Zhipu AI CEO Zhang Peng reportedly highlighted the company’s accelerated adoption of domestic Chinese chips. This strategic pivot, commencing in February, is in response to a substantial surge in computing demand and aligns with Beijing’s overarching strategy to bolster its indigenous semiconductor industry. This development is particularly significant given that Zhipu AI’s model training capabilities were previously hampered by U.S. export restrictions, limiting its access to cutting-edge semiconductor technology and expertise.
Adding to the geopolitical complexities, Zhipu AI was placed on the U.S. Commerce Department’s Entity List in January of the previous year, citing alleged ties to China’s military.
The market sentiment extended to other Chinese AI players. Shares of MiniMax, another Zhipu AI competitor that also went public in Hong Kong in January, saw a notable increase of approximately 16% in Wednesday’s trading session. The competitive landscape among these domestic AI powerhouses underscores the significant investment and strategic importance China places on achieving leadership in the global AI arena. The interplay between technological innovation, geopolitical considerations, and market performance will continue to shape the trajectory of these emerging AI giants.
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