Chinese AI Firm Zhipu Rises in Historic Hong Kong Market Debut
Shares of Knowledge Atlas Technology, known as Zhipu, climbed in their Hong Kong trading debut on Thursday following a $558 million initial public offering. The listing marks a significant milestone, establishing Zhipu as the first of China's major large language model developers, often called "AI tigers," to go public via an IPO.
The Beijing-based startup's stock rose as much as 15% above its offer price, giving the company a valuation of approximately $550 million. Founded in 2019 by university researchers, Zhipu has emerged as a key domestic player in China's strategic push to lead in artificial intelligence, despite operating under U.S. export restrictions that limit its access to advanced semiconductor technology.
A Strategic Player Amidst Global Competition
Zhipu's progress has drawn international notice, with OpenAI previously identifying it as a notable competitor on the "front line" of China's AI development. The company maintains a global footprint with offices and innovation centers in the U.K., Singapore, Southeast Asia, and the Middle East. According to its prospectus, Zhipu intends to allocate 70% of the IPO proceeds to research and development for its general-purpose AI models, underscoring its focus on core technology advancement.
The successful debut paves the way for other Chinese AI firms, with rival MiniMax expected to launch its own offering shortly. Zhipu's listing represents a vote of confidence in China's homegrown AI sector and highlights the ongoing bifurcation of the global technology landscape, as leading Chinese firms continue to advance despite geopolitical and trade headwinds.
