China’s Zhipu AI Expands Globally, Secures $1.4 Billion Despite US Ban

- Zhipu AI scales globally despite US sanctions over alleged military ties. - Firm secures $1.4 billion, valued at $2.78 billion, eyes potential IPO. Zhipu AI, a China-backed artificial intelligence startup, is expanding globally despite facing US sanctions over alleged connections to military modernization efforts. With over $1.4 billion in funding from regional Chinese governments, this backing allows the company to play a pivotal role in Beijing's strategy, which aims to reduce dependence on foreign technology and advance China's AI leadership in emerging markets worldwide. On 2025-06-26, Cryptopolitan reported that Zhipu AI has made notable strides as the company scales its operations across Southeast Asia, the Middle East, and Africa, having established international offices in cities such as London, Dubai, and Kuala Lumpur. This expansion positions Zhipu AI as a competitive alternative to Western AI providers. Although the US Commerce Department included Zhipu AI on its Entity List in January 2025, Zhipu AI boasts an approximate valuation of $2.78 billion (20 billion yuan), and reports also suggest it is exploring an initial public offering (IPO). According to a blog post on Substack by OpenAI Global Affairs on 2025-06-25, Zhipu AI offers tailored AI infrastructure solutions for governments in emerging markets, including sovereign large language model (LLM) systems and turnkey private "AI-in-a-box" solutions developed in collaboration with Huawei. The post stated that OpenAI analysts noted many regard Zhipu AI as “China’s answer to OpenAI for Countries,” a status underscoring its importance in driving Beijing's global AI ambitions. Furthermore, the post emphasized Zhipu AI's standing among China’s "AI tigers," a term used for enterprises integral to the Communist Party's goal of achieving worldwide AI dominance. On June 26, the South China Morning Post confirmed Zhipu AI's global expansion, which aligns with China's broader strategy to counteract US-led initiatives like OpenAI's Stargate program. The company caters to emerging economies, and through this approach, it aims to position Chinese AI frameworks as credible alternatives for countries navigating geopolitical dynamics around technology adoption. Despite ongoing controversy regarding its alleged involvement in China’s military modernization, Zhipu AI continues its trajectory toward becoming a global AI leader. Moreover, its ability to secure significant funding, expand internationally, and foster self-reliance underscores broader trends apparent in China’s economic and technological strategies. According to CoinMarketCap on June 26, Ethereum (ETH) trades at $2,081 as of 12:00 UTC, reflecting a 1.7% increase in its 24-hour trading volume.