.thestandard.com.hk/breaking-news"}},{"@type":"ListItem","position":2,"name":"Hong Kong News","item":{"@type":"Thing","@id":"https://www.thestandard.com.hk/hong-kong-news"}},{"@type":"ListItem","position":3,"name":"Entertainment","item":{"@type":"Thing","@id":"https://www.thestandard.com.hk/entertainment"}},{"@type":"ListItem","position":4,"name":"World News","item":{"@type":"Thing","@id":"https://www.thestandard.com.hk/world-news"}},{"@type":"ListItem","position":5,"name":"Comment","item":{"@type":"Thing","@id":"https://www.thestandard.com.hk/comment"}}]}]17:T77c,

Chinese startup Zhipu raised more than 1 billion yuan (HK$1.07 billion) in a financing round led by local government-backed firms, underscoring the growing interest in domestic AI following DeepSeek’s ascent.

Participants in Zhipu’s latest funding included Hangzhou Municipal Construction Investment Group and Shangcheng Capital, both controlled by the government of Hangzhou — DeepSeek’s home town. They joined existing backers Alibaba (9988) and Tencent (0700) Zhipu, last valued at about US$3 billion (HK$23.4 billion) during a May 2024 round, disclosed its latest financing and investors in a WeChat statement without going into further detail.

DeepSeek rekindled interest in China’s AI and tech scene after debuting in January an AI model deemed to surpass some of the best the West has on offer, but at a fraction of the cost.

AI developers from Alibaba to Baidu (9888) have since sped up efforts to advance their large-language models, intensifying competition both at home and with US rivals such as OpenAI and Meta Platforms. Baidu is planning to offer about 10 billion yuan of bonds offshore, Bloomberg News reported Monday.

Still, the investment in Zhipu comes after it was added to another trade-restrictions blacklist by the US Commerce Department in January, which threatens to impede access to critical technology. The Chinese startup has denied all

Alibaba-Backed Zhipu raises 1 billion yuan as DeepSeek heats up AI