Move over DeepSeek – there’s a bigger player rising fast in China’s AI ecosystem. 
Zhipu AI, a little-known name outside the tech elite, is rapidly making waves as a formidable force in the space of sovereign AI, and it’s now catching serious attention worldwide, especially from the U.S.
While American tech giants like OpenAI have long dominated global AI conversations, Zhipu AI is quietly building partnerships that could shift the balance. Backed by more than $1.4 billion in funding from Chinese state-led programs and a hefty $400 million from Saudi Arabia’s Prosperity7 Ventures, the startup is no longer flying under the radar.
What sets Zhipu AI apart is its mission: enabling governments to deploy private, secure AI systems. It has already teamed up with Huawei to provide sovereign LLM (Large Language Model) infrastructure and dedicated hardware – a crucial step in letting countries run AI operations independent of U.S. tech control. Its technology stack includes the AutoGLM Rumination agent, capable of browser automation and long-context reasoning, positioning it alongside top-tier AI models globally.
And it’s not just China. Zhipu is actively partnering with countries like Malaysia, Singapore, and multiple Gulf nations to support localized AI development. This shift signals an expansion of Chinese AI influence into regions the U.S. has also been eyeing – particularly the Middle East, where geopolitical interests and technological ambitions now intersect.
Experts in Washington are increasingly concerned. Despite recent U.S. policies attempting to cut off China’s access to high-end semiconductors and restrict Huawei’s growth, China’s AI strategy appears more adaptive and international than ever. By investing in sovereign AI, Zhipu AI is helping countries build autonomy in their data and infrastructure – a direct challenge to American tech dominance.
The implication is clear: Zhipu AI isn’t just another Chinese startup. It’s a sign that China is playing the long game in AI, aligning technology with diplomacy and economics to gain strategic global leverage. The race is no longer about who builds the smartest model – it’s about who controls the infrastructure behind it.