Zhipu AI IPO and cloud alliance mark China’s strategic leap into global sovereign AI
Zhipu AI, one of China’s top generative AI startups, has formed a strategic partnership with Alibaba Cloud. The move supports its international expansion and comes as the company prepares for an anticipated initial public offering (IPO). Announced at GITEX Asia, the alliance signals a turning point for the Tsinghua University spin-off. With this step, Zhipu AI is expanding its sovereign AI products across Asia, the Middle East, and Europe. The upcoming Zhipu AI IPO has now become a key milestone in China’s growing AI ambitions amid regulatory and competitive pressures.
Background: Sovereign AI moves onto the world stage
Founded in 2019, Zhipu AI built momentum with its GLM (Generative Language Model) series. These models deliver multilingual AI tools tailored for local cultures and use cases. Zhipu’s AI systems already support chatbots, business software, and government services across China.
Now, with Alibaba Cloud—the country’s largest public cloud provider—Zhipu is scaling globally. Yet it still ensures that model training and data control stay in China. At GITEX, the company showcased a live demo: an AI assistant guiding a non-Chinese speaker through Beijing. The presentation highlighted the company’s practical, global-ready technology.
IPO gains traction despite geopolitical roadblocks
Zhipu AI is likely to become one of China’s first generative AI companies to go public. In March 2025, the company raised ¥300 million (US$41.5 million) from the Chengdu municipal government. This was its third state-backed round within a year.
That funding came despite Zhipu being placed on the U.S. Commerce Department’s Entity List in January 2025. This move restricted its access to U.S. technologies. In response, Zhipu doubled down on independence. It has since localized its model development and expanded hiring in Singapore, Malaysia, the UK, and the Middle East. It also opened new global research hubs.
Strategic vision: Exporting sovereign AI to the Global South
Zhipu’s international push focuses on sovereign AI—systems built and hosted locally, aligned with each country’s laws and languages. This strategy appeals to nations that want alternatives to U.S.-based providers like OpenAI or Google Cloud.
Alibaba Cloud’s backing adds weight. After its corporate restructuring, Alibaba pledged deeper investment in AI infrastructure. Supporting Zhipu fits this goal. Together, the two firms aim to build a decentralized, regulation-aligned model of AI deployment.
Editorial insight: Zhipu redefines China’s AI playbook
Zhipu AI’s approach is reshaping China’s global AI narrative. It is not competing directly in crowded Western markets. Instead, the firm is focusing on regions where sovereignty, data control, and localization matter most.
Its upcoming IPO will serve as a critical test. Investors will examine not just Zhipu’s business metrics, but also whether Chinese AI can gain global trust amid rising decoupling, censorship concerns, and rivals like South Korea’s Upstage and Japan’s NTT Data.
Conclusion: Will Zhipu become China’s global AI champion?
Zhipu AI’s partnership with Alibaba Cloud, its IPO plans, and its sovereign AI strategy point to a bold new chapter in China’s tech story. If it can deliver localized, compliant AI at scale, Zhipu may become China’s first publicly traded AI unicorn.
More importantly, Zhipu could lead a new wave of “AI diplomacy.” In this era, trust, regulation, and cultural fit matter just as much as model performance. Zhipu is betting that global enterprises and governments are ready for that shift—and it’s building fast to lead the way.
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