China’s artificial intelligence race—once dominated almost exclusively by tech giants like Baidu, Alibaba, and Tencent—is entering a new phase as homegrown foundation-model startups challenge incumbents and attract unprecedented market attention. Leading the charge is Zhipu, one of China’s fastest-growing AI companies and a rising star in the global model-development ecosystem. With rapidly accelerating revenues, explosive user adoption, and intensifying government and corporate backing, Zhipu is now widely seen as the first serious candidate to launch China’s inaugural AI IPO.
As geopolitical tensions reshape global tech competition, Zhipu’s ascent signals a pivotal moment for China’s AI strategy. The country has committed to building its own large language models (LLMs) and foundational AI stack to reduce dependence on U.S. technology. Zhipu—often described as China’s closest analogue to OpenAI—has emerged as a central pillar of that ambition, developing competitive models, attracting vast developer interest, and scaling commercial adoption at an extraordinary pace.
The company’s growth trajectory suggests that China’s AI IPO era is about to begin—and the global AI ecosystem will need to pay attention. 
A New National Champion in the Making
Founded by Tsinghua University alumni and AI researchers, Zhipu has positioned itself as one of the most academically grounded and technologically ambitious AI firms in the country. Its Gemini analogue, GLM (General Language Model), has become China’s most prominent locally trained LLM family.
Key strengths include:
- proprietary training datasets
- independent model architecture
- strong ties to China’s academic elite
- deep integration into enterprise and public-sector systems
- alignment with national AI development policies
Zhipu’s goal is not merely to compete with global AI leaders—but to build a sovereign AI ecosystem that China can rely on at scale.
Explosive Revenue Growth: From Research to Commercial Powerhouse
Zhipu’s business model has shifted dramatically in the past 18 months.
What was once primarily a research and development organization has now become a diversified commercial AI platform. Its revenues have surged, driven by demand for large-model APIs, enterprise integrations, and on-premise deployment solutions.
Several revenue engines are now firing simultaneously:
- API and cloud model services
– subscriptions from startups, corporates, and developers
– pay-per-token LLM usage
– multimodal extensions - Enterprise-level deployments
– banks, insurers, manufacturers, logistics networks
– companies needing in-house, secure AI infrastructure
– government-approved closed-loop deployments - Partnerships with telecom, infrastructure, and hardware giants
– integration with Huawei cloud systems
– model optimization for domestic GPU alternatives
– ecosystem alliances with China Mobile, China Unicom, and others - Consumer-facing AI apps
– chatbots, productivity co-pilots, coding assistants
– educational tools
– creative-generation products - Developer tools and enterprise SDKs
– fine-tuning suites
– secure data platforms
– domain-specific model customization packages
With China’s big tech companies aggressively adopting local LLMs due to regulatory constraints and cost considerations, Zhipu has found a large and fast-growing domestic market.
Its revenue expansion has accelerated enough that major Chinese investment banks now view the firm as IPO-ready within 12–24 months.
User Growth: A Developer Magnet and Consumer Favorite
If revenue is one pillar of Zhipu’s IPO case, user growth is the other.
Zhipu’s developer ecosystem has surged, with millions of developers experimenting with its GLM models and thousands of companies integrating them into real-world applications.
Adoption drivers include:
- low-cost access compared to foreign LLMs
- optimized performance on Chinese-language tasks
- compliance with domestic data standards
- high performance in reasoning, coding, and knowledge-intensive tasks
- reliable on-prem deployment demanded by state-linked enterprises
Its consumer-facing AI assistant products have also seen rapid uptake among students, professionals, and creators—mirroring OpenAI’s ChatGPT trajectory within China’s regulatory bounds.
Where other Chinese LLMs struggle with scale or quality consistency, Zhipu has established itself as the model of choice for serious developers and enterprises.
The AI IPO Race: Why Zhipu Is Leading the Pack
China’s capital markets are hungry for a flagship AI listing.
Several startups—from Baichuan to MiniMax to Moonshot AI—remain strong competitors, but Zhipu stands out for several structural reasons:
1. Academic and Government Legitimacy
Tsinghua lineage and strong ties to China’s elite research ecosystem give Zhipu unparalleled institutional backing.
2. A Clear Commercial Path
Zhipu has diversified revenue streams, unlike competitors still reliant primarily on venture capital and subsidies.
3. Enterprise and Public Sector Penetration
Its technology is embedded in high-value, regulated sectors where trust and security matter.
4. Independence From U.S. GPU Supply
Zhipu has heavily optimized GLM models to run on domestic hardware—including Huawei’s Ascend chips—reducing geopolitical risk.
5. Regulatory Alignment
Its model complies with China’s stringent AI content and safety regulations—essential for long-term viability.
6. A Scalable Ecosystem
GLM functions not only as a chatbot engine but as a platform powering everything from finance to education to manufacturing.
These factors make Zhipu the closest thing China has to OpenAI—at least in terms of positioning and potential scale.
Timing the IPO: Beijing Wants a National AI Champion
China’s push for technological self-sufficiency is accelerating.
The government wants a globally competitive AI ecosystem, and capital markets are an essential component of that strategy.
An AI IPO would:
- showcase China’s technological maturity
- attract foreign capital into emerging-tech sectors
- provide liquidity to reinvest in model training
- signal global competitiveness
- anchor China’s AI market with a publicly traded standard-bearer
Zhipu’s growth trajectory makes it the ideal candidate.
Where could the IPO happen?
- Hong Kong (likely)
- Shanghai STAR Market (possible)
- Shenzhen ChiNext (another candidate)
A U.S. listing is extremely unlikely under current geopolitical conditions.
Risks Ahead: The Challenges Zhipu Must Overcome
Even with its advantages, Zhipu faces formidable challenges:
1. Intense Domestic Competition
Baichuan, iFlytek, Tencent, Alibaba, and Baidu all compete aggressively.
2. GPU and Compute Constraints
Domestic AI chips are improving, but still trail NVIDIA-class performance.
3. Monetization vs. Cost
Training and inference remain capital-intensive; profitability is not assured.
4. Regulatory Tightening
China’s AI rules continue to evolve—and could impose new burdens.
5. Global Markets Closed
US and European markets are largely inaccessible for expansion.
Still, analysts note that no Chinese AI startup is better positioned to overcome these challenges than Zhipu.
Conclusion: Zhipu Is Becoming the Benchmark for China’s AI Future
Zhipu’s surge in revenue, its rapidly expanding user base, and its strategic alignment with national priorities have made it the frontrunner to become China’s first publicly listed AI model company. Its growth represents more than corporate success—it reflects China’s determination to build sovereign AI capabilities capable of competing with global leaders.
If Zhipu goes public, it will mark a turning point for China’s technology landscape, showcasing a new generation of AI-native companies ready to step onto the world stage.
The IPO countdown has already begun—now the question is not whether Zhipu will go public, but when, where, and how large the offering will be.
