Zhipu AI is gaining global attention as a key player in China’s AI race, OpenAI says. The Beijing-backed startup, less known internationally than DeepSeek, is expanding fast and snagging huge government funding — over $1.4 billion.
OpenAI highlighted Zhipu AI’s close ties to China’s Communist Party leadership, including Premier Li Qiang. The AI firm is moving beyond China with offices in the Middle East, UK, Singapore, Malaysia, and innovation projects in Southeast Asia.
Zhipu AI is viewed as part of China’s “Digital Silk Road,” pushing AI infrastructure in emerging markets. OpenAI says the strategy aims to establish Chinese AI systems before US or European rivals can. 
OpenAI’s blog framed Zhipu as pushing a “responsible, transparent and audit-ready” Chinese AI alternative.
Zhipu AI Chairman Liu Debing told reporters last week the company wants to share China’s AI power globally.
“The goal is to lock Chinese systems and standards into emerging markets before US or European rivals can, while showcasing a ‘responsible, transparent and audit-ready’ Chinese AI alternative,” OpenAI wrote.
Zhipu AI also reportedly works with China’s military. The US slapped it on the Commerce Department’s Entity List in January for that connection.
Zhipu’s IPO plans are underway, with a valuation around 20 billion yuan ($2.78 billion).
OpenAI is fighting back with its own global push. It recently announced a $500 billion AI investment effort with partners including Oracle, Nvidia, and Cisco Systems — building a UAE AI campus launching in 2026.
OpenAI also secured a $200 million U.S. Defense contract and launched “OpenAI for Government” to spread its AI tools domestically. The AI competition between these two will likely only heat up.
