This Chinese AI startup, which is blacklisted by the U.S.

This Chinese AI startup, which is blacklisted by the U.S. and supported by Beijing, has attracted the interest of OpenAI.

Published Thu, Jun 26 20252:52 AM EDTUpdated Thu, Jun 26 20253:34 AM EDT

Key Points

• In a blog post on Wednesday, OpenAI said that Beijing-backed Zhipu AI had made “notable progress” in the global AI race.
• The startup is offering AI infrastructure solutions to governments around the world, OpenAI said.
• “While we hear the most about new models, just as significant is CCP headway in getting other governments around the world to adopt its AI,” OpenAI said. 
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  The Zhipu AI logo is seen displayed on a smartphone screen.
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• OpenAI is highlighting a lesser-known artificial intelligence startup that it considers to be at the "forefront" of China's quest to dominate the global AI landscape — and it's not DeepSeek.

  
  

  In a blog post published on Wednesday, the company stated that Zhipu AI, which is supported by Beijing, has achieved "significant advancements" in the AI competition as worldwide rivalry intensifies.

• Zhipu AI, established in 2019, has been labeled by local media as one of China’s "AI tigers" — a group of large language model unicorns considered crucial to Beijing’s ambitions to compete with the U.S. and lessen its reliance on American technology.

  
  

  Although another "AI tiger," DeepSeek, has garnered most of the global spotlight following the launch of its R1 model in January, OpenAI argues that Zhipu’s growth beyond China and its connections to Beijing warrant closer examination.

  
  

  According to state media, the startup has secured funding from various local governments. OpenAI stated, "Zhipu AI leadership often interacts with CCP officials, including Premier Li Qiang," estimating that state-supported investments in the startup exceed $1.4 billion.

• Zhipu AI is said to have locations in the Middle East, the UK, Singapore, and Malaysia, and is actively involved in collaborative "innovation centers" initiatives throughout Southeast Asia, particularly in Indonesia and Vietnam.
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• These elements could position Zhipu AI as a pivotal player in China's "Digital Silk Road" initiative, providing AI infrastructure solutions to governments globally. "The objective is to secure Chinese systems and standards in emerging markets ahead of US or European competitors, while presenting a 'responsible, transparent, and audit-ready' Chinese AI option," stated OpenAI. Zhipu AI has not yet replied to a request for comment regarding OpenAI's remarks. Nevertheless, last week, Zhipu AI Chairman Liu Debing informed reporters that the company aims to share China's AI capabilities with the world.

  These elements could position Zhipu AI as a pivotal player in China's "Digital Silk Road" initiative, providing AI infrastructure solutions to governments globally. "The objective is to secure Chinese systems and standards in emerging markets ahead of US or European competitors, while presenting a 'responsible, transparent, and audit-ready' Chinese AI option," stated OpenAI.  
  
• These objectives pose a challenge to OpenAI, which has garnered support from Washington to establish its foundational models as the premier AI solution globally. In May, during a trip to the UAE, U.S. President Donald Trump revealed over $200 billion in commercial agreements in the area, which includes a project to create a Stargate UAE AI campus in collaboration with OpenAI, Oracle, Nvidia, and Cisco Systems. This initiative is anticipated to launch in 2026. The Stargate Project represents a $500 billion investment initiative focused on AI in the private sector, unveiled by OpenAI in January in collaboration with the Abu Dhabi investment firm MGX and Japan's SoftBank.
• This month, OpenAI secured a $200 million contract to provide artificial intelligence tools to the U.S. Defense Department. They also launched 'OpenAI for Government,' a program aimed at giving public servants across the U.S. access to their AI resources.