Chinese AI startup Zhipu AI has secured 300 million yuan ($41.5 million) in investment from a government-backed fund in Chengdu, as reported by the Beijing News on Wednesday. This marks the latest effort by Chinese cities to bolster domestic AI development.
The investment from Chengdu Hi-Tech Industrial Development Zone follows two recent funding rounds by Zhipu from different local governments this month, indicating increasing support for AI companies amidst growing competition with the United States.
The Beijing-headquartered startup also received investment from Zhuhai city's state-owned Huafa Group last week and a 1 billion yuan funding round from Hangzhou City Investment Group Industrial Fund earlier this month.
Zhipu AI, founded in 2019 and recognized as one of China's leading "AI tigers," has received investments from tech giants Tencent, Meituan, and Xiaomi across more than 15 funding rounds. According to business registration platform Qichacha, the company was valued at 20 billion yuan during a funding round in July 2024.
As part of the recent investment, Zhipu will collaborate with Chengdu to develop a regional AI model for Sichuan province named "Zhipu Zhuge." The partnership will involve establishing an AI infrastructure, including a model training center and research facility in the city, as reported by Beijing News.
In January, Zhipu and its subsidiaries were added to the U.S. Commerce Department's export control entity list due to restrictions on procuring U.S. components.
(1 USD = 7.2355 Chinese yuan renminbi)