Blacklisted by the U.S. and backed by Beijing, this Chinese AI startup has caught OpenAI's attention

OpenAI is putting a spotlight on an under-the-radar artificial intelligence startup that it believes is on the "front line" of China's race to lead the world in AI — and its not DeepSeek. In a blog post on Wednesday, the company wrote that Beijing-backed Zhipu AI has made "notable progress" in the AI race, as global competition ramps up. Zhipu AI, founded in 2019, has been referred by domestic media as one of China's "AI tigers" — a class of large language model unicorns seen as key to Beijing's efforts to rival the U.S. and reduce its dependence on American technology. While fellow "AI tiger" DeepSeek has received the lion's share of international attention after it released its R1 model in January, OpenAI suggests that Zhipu's expansion outside China and its ties to Beijing deserve more scrutiny. The startup has raised funds from several local governments, according to state media. "Zhipu AI leadership frequently engages with CCP officials, including Premier Li Qiang," OpenAI claimed, pegging the value of state-backed investments in the startup at over $1.4 billion. Zhipu AI reportedly has offices in the Middle East, the United Kingdom, Singapore and Malaysia, and is also running joint "innovation centers" projects across Southeast Asia, including in Indonesia and Vietnam.