Beijing Zhipu Huazhang Technology Co. Ltd. is reconsidering its IPO strategy amidst significant executive departures, including key leaders this year. Originally aiming for a listing in Shanghai or Shenzhen, Zhipu is reportedly exploring a Hong Kong IPO to potentially raise $300 million. Following a successful funding round, the company’s valuation soared to 40 billion yuan (over $5 billion). Regarded as a major competitor to foreign firms like OpenAI, Zhipu leverages strong governmental ties and has attracted investments from tech giants such as Alibaba and Tencent. However, the emergence of rival DeepSeek has intensified market pressures and price wars in the AI landscape, leading to a substantial decline in Zhipu’s token pricing. Despite revenue of 3 billion yuan last year, Zhipu incurred a net loss of 2 billion yuan, underscoring the urgency for a strategic IPO to stabilize growth and achieve profitability.
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