Zhipu, a Chinese AI startup, has secured over 1 billion yuan (US$140 million) in its latest funding round.

The round was led by government-backed entities, including Hangzhou Municipal Construction Investment Group Co. and Shangcheng Capital, both associated with the local government in Hangzhou.

Existing investors, such as Alibaba Group Holding Ltd. and Tencent Holdings Ltd., also participated in the funding.

Zhipu confirmed the investment in a statement via WeChat but did not disclose further details.

This investment comes amid a heightened focus on China’s AI sector.

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