Chinese AI startup Zhipu AI has secured 300m yuan ($41.5m) investment from the Chengdu Hi-Tech Industrial Development Zone, reported Reuters citing state media the Beijing News.
This funding is part of a broader initiative by Chinese cities to ramp up support for domestic AI development.
As part of the latest funding, Zhipu will collaborate with Chengdu to develop a regional AI model for Sichuan province, known as “Zhipu Zhuge”.
The partnership will also involve building AI infrastructure, including a model training centre and a research facility in the city, according to a Beijing News report.
Despite the domestic support, Zhipu and its subsidiaries faced a setback when they were added to the US Commerce Department’s export control entity list in January 2025, restricting their ability to procure US components.
The Beijing-based company, established in 2019, is recognised as one of China’s “AI tigers.”
The company has attracted investment from several tech giants, including Tencent, Meituan, and Xiaomi, over more than 15 funding rounds.
The latest investment follows two other substantial funding rounds from various local governments earlier in March 2025.
Recently, Zhipu AI received 500m yuan from Zhuhai city’s state-owned Huafa Group.
In addition, Hangzhou City Investment Group Industrial Fund participated in a separate 1bn yuan funding round earlier in March 2025.
This surge of investments comes as Zhipu AI’s domestic rival, DeepSeek, has made headlines worldwide.
