Chinese start-up Zhipu AI is gaining traction with government contracts in several countries, according to a report by OpenAI on Wednesday.
The company is part of China’s broader push to become a global leader in artificial intelligence and reduce dependence on U.S. technology.
Zhipu AI, which is backed by the Chinese government and supported by over $1.4 billion in state funding, is supplying AI tools to public-sector clients in Malaysia, Singapore, the UAE, Saudi Arabia, and Kenya. Its offerings include large language model infrastructure and hardware developed in partnership with Huawei.
OpenAI said Zhipu AI is aiming to establish Chinese systems and standards in emerging markets ahead of U.S. or European competitors. The company promotes its technology as a “responsible, transparent, and audit-ready” alternative.
The growing presence of Zhipu AI comes as China works to build a self-sufficient and competitive AI ecosystem. The company is seen alongside other Chinese AI firms such as DeepSeek, Moonshot AI, and Minimax, as well as major tech players like ByteDance and Alibaba.
In January, the U.S. Commerce Department added Zhipu AI to its export control entity list, limiting its access to American components. Despite the restrictions, Zhipu AI continues to expand its international footprint.
OpenAI has also been active in the region, partnering with governments through its “OpenAI for Countries” initiative. The program is designed to help countries develop their own AI capabilities with support from the U.S. government.
The update reflects the ongoing competition between the U.S. and China to shape the future of AI technology on a global scale.
