China’s AI Unicorn, Zhipu AI, Launches $214 Million Fundto Back Big Language Model Startups
Beijing, November 1, 2024 – Zhipu AI, a leading Chinese artificial intelligence (AI) company specializing in large language models (LLMs), has announced the launch ofits venture capital fund, Z Fund, with an initial commitment of 1.5 billion yuan (approximately $214 million). The fund, established inpartnership with prominent investors including Shijingshan Modern Innovation Industry Development Fund, Aofei Data, Yanbei Capital, and Fuzhuo Investment, will focus on early-stage investments in the burgeoning LLM ecosystem.
Zhipu AI, known for its flagship ChatGLM series of open-source conversational models, is taking a page from the playbook of OpenAI, the American AI research lab, by becoming a limited partner (LP) in its own fund. This move signifiesZhipu’s ambition to not only develop its own LLMs but also nurture a vibrant ecosystem of startups within the LLM space.
Z Fund is dedicated to supporting the next generation of innovators in the LLM field, said [Name], CEO of Zhipu AI. We believe that the LLMtechnology has the potential to revolutionize various industries, and we are committed to fostering a thriving ecosystem that drives innovation and accelerates the adoption of this transformative technology.
The fund will invest in companies across the LLM value chain, from foundational infrastructure and industry-specific solutions to cutting-edge applications. Zhipu AI hasalready made several strategic investments, including those in KiuFlow Technology, Wuwen Xinqung, Muyan Zhiyu, CaiZhi Technology, and Dongyi Technology, showcasing its commitment to supporting a diverse range of LLM startups.
Zhipu AI, founded in 2019, is a spin-offfrom Tsinghua University’s Knowledge Engineering Group (KEG) laboratory. The company has quickly become a prominent player in China’s LLM landscape, earning its place among the Big Six LLM companies in the country. Since launching its ChatGLM series in March 2023, Zhipu AI hasreleased over 20 AI models and products, demonstrating its rapid technological advancements.
On the business front, Zhipu AI has established a robust ecosystem of over 2,000 partners and deployed its LLMs in over 1,000 applications across various sectors, including media, consulting, consumergoods, finance, renewable energy, internet, and smart office.
The company’s impressive growth has been fueled by significant funding rounds. In 2023 alone, Zhipu AI raised over 2.5 billion yuan (approximately $357 million) from investors including Junlian Capital, QimingVenture Partners, Zhongke Chuangxing, Meituan, Ant Group, Alibaba, Tencent, Xiaomi, Kingsoft, Shunwei, Boss Zhipin, Good Future, Sequoia Capital, and Hillhouse Capital. In March 2024, Beijing Artificial Intelligence Industry Investment Fund joined the investment round, followed byProsperity7, the venture capital arm of Saudi Aramco, in June 2024, bringing the total funding to $400 million. In September 2024, Zhipu AI secured further investment from Zhongguancun Science City Company, a market-oriented investment platform established by Beijing HaidianDistrict.
With the launch of Z Fund, Zhipu AI is poised to play an even more pivotal role in shaping the future of LLMs in China. The fund’s focus on early-stage investments will help to accelerate the development of innovative LLM applications and further solidify Zhipu AI’s position as aleader in the rapidly evolving AI landscape.
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