Prime Highlight
- Zhipu shares surged up to 15% above the offer price in their Hong Kong trading debut, marking a landmark moment for China’s AI sector.
- The listing makes Zhipu the first of China’s “AI tigers” and the country’s first large language model developer to go public.
Key Facts
- Zhipu raised about $558 million by selling 37.4 million shares at HK$116.20, valuing the company at roughly HK$4.3 billion.
- Around 70% of the IPO proceeds will be used for AI research and development; the company reported 312.4 million yuan in revenue in 2024.
Background
Shares of Zhipu, officially known as Knowledge Atlas Technology JSC, climbed sharply in their Hong Kong trading debut on Thursday, marking a major milestone for China’s artificial intelligence industry.
The Beijing-based startup raised about $558 million through its initial public offering, making it the first of China’s so-called “AI tigers” to list publicly. The stock opened strong and surged as much as 15% above its offer price of HK$116.20 during early trade. Around 37.4 million shares were sold in the offering, valuing the company at about HK$4.3 billion.
Founded in 2019 by researchers from a leading Chinese university, Zhipu is the country’s first large language model developer to reach the public markets. The listing follows a series of recent IPOs by Chinese AI chipmakers and underlines Beijing’s push to build a strong domestic AI sector.
Zhipu is widely seen as one of China’s most promising challengers to US leaders such as OpenAI and Anthropic. Last year, OpenAI itself highlighted Zhipu as a front-line competitor in China’s AI race. The company operates offices in the UK, Singapore, Malaysia, and the Middle East, and runs innovation projects across Southeast Asia.
The firm has continued to grow even after the US Commerce Department put it on the Entity List in early 2024, accusing it of having links to China’s military. US export controls have also restricted the firm’s access to advanced chips and AI experts.
According to its prospectus, Zhipu will use about 70% of the IPO funds for research and development of general-purpose AI models. It reported revenue of 312.4 million yuan in 2024.
Another Chinese AI startup, MiniMax, is expected to launch its own Hong Kong listing on Friday.