Chinese AI Firm Zhipu Marks Market Debut with Modest Gains in Hong Kong

 A prominent Chinese artificial intelligence startup made its first appearance on public markets on Thursday, marking a notable moment for China’s fast-evolving AI industry. Zhipu, officially known as Knowledge Atlas Technology JSC, saw its shares edge higher in early Hong Kong trading following a sizable initial public offering.

The Beijing-based company raised approximately $558 million in its listing, becoming the first major Chinese developer of large language models to go public. Shares climbed as much as 15% above the offer price during initial trading, reflecting cautious optimism from investors amid a competitive and politically sensitive sector.

Founded in 2019 by researchers from a leading Chinese university, Zhipu has positioned itself as one of the country’s most advanced generative AI firms. Its public debut underscores growing investor interest in Chinese artificial intelligence companies, following recent listings by domestic AI chipmakers and technology suppliers.

Zhipu is widely regarded as part of a group of elite startups sometimes referred to as China’s “AI tigers,” companies aiming to build large-scale language models capable of competing with established global players. While the firm maintains a lower international profile than some rivals, it has expanded its footprint overseas, operating offices across Europe, Southeast Asia, and the Middle East, alongside regional innovation partnerships.

The company’s rise has not been without challenges. Zhipu has faced restrictions stemming from its inclusion on a U.S. trade blacklist, limiting access to advanced semiconductor technology and specialized expertise. Despite these constraints, the firm has continued to develop its core products and broaden its commercial presence.

According to its listing documents, Zhipu plans to allocate the majority of its IPO proceeds to research and development, reinforcing its focus on advancing general-purpose AI models. The company reported revenues of just over 300 million yuan last year, highlighting both its growth potential and the early-stage nature of its business.

Zhipu’s listing is viewed as a test case for investor appetite toward Chinese AI companies in public markets. With rival startups expected to follow, the debut may signal a new phase of capital market access for China’s next generation of artificial intelligence developers.