China’s first ‘AI tiger’ goes public as Zhipu climbs in Hong Kong debut

Shares of Data Atlas Expertise JSC, higher often called Zhipu, edged increased on their Hong Kong debut, following a $558 million preliminary public providing that made it the primary of China’s “AI tigers” to go public.

The inventory rose round 10% above its provide value of 116.20 Hong Kong {Dollars} ($15) on Thursday, with round 37.4 million shares on provide by the Beijing-based startup.

The IPO valued Zhipu at round HK$4.3 billion, making it one of many bigger AI flotations lately. 

Based in 2019 by researchers from a high Chinese language college, Zhipu represents the nation’s first main massive language mannequin firm to go public via an IPO. The itemizing marks one other key milestone for China’s broader synthetic intelligence sector following a wave of latest listings by AI chipmakers. 

The agency, strongly backed by Beijing, can also be thought of certainly one of China’s so-called “AI tigers” — startups constructing massive language fashions to rival the likes of OpenAI and Anthropic. 

Different notable companies within the group embody Deepseek, which famously rattled markets early final 12 months with the discharge of certainly one of its LLM fashions. 

Whereas not as well-known globally as Deepseek, Zhipu gained consideration final 12 months when American AI juggernaut OpenAI highlighted its notable progress as a competitor on the “entrance line” of China’s race to guide in AI. 

The agency reportedly has places of work in the UK, Singapore, Malaysia, and throughout the Center East. It additionally operates joint “innovation facilities” tasks throughout Southeast Asia, together with in Indonesia and Vietnam.

Zhipu’s progress has come regardless of being positioned on the US Commerce Division’s Entity Record in January final 12 months, after U.S. officers mentioned it was working with China’s army. The agency’s skill to coach its AI fashions has additionally been constrained by U.S. restrictions on entry to superior semiconductor expertise and experience.

In line with Zhipu’s prospectus, it plans to make use of 70% of the IPO proceeds towards analysis and improvement of its general-purpose massive AI fashions. The agency reported income of 312.4 million yuan in 2024.

Rival Chinese language AI start-up MiniMax is predicted to launch its personal providing on Friday, following a confidential submitting final 12 months.