OpenAI Identifies Beijing-Backed Zhipu AI as a Major Competitor

OpenAI has highlighted the emerging Chinese AI startup Zhipu AI, founded in 2019, as a significant player in the global AI race, particularly in relation to China’s ambitions to compete with the U.S. and reduce tech dependence. Labeled as one of China’s “AI tigers,” Zhipu AI has garnered substantial state-backed investments exceeding $1.4 billion and maintains close ties with Beijing officials. The company is expanding internationally, with offices in regions like the Middle East and Southeast Asia, potentially playing a crucial role in China’s “Digital Silk Road” strategy to implant its tech standards abroad. Zhipu AI’s ambitions pose a challenge to OpenAI, which enjoys U.S. governmental support, including recent multi-billion dollar AI investments and partnerships. Zhipu AI is also reportedly collaborating with China’s military to modernize its capabilities and is taking steps toward an initial public offering, having previously been valued at around $2.78 billion.

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