Chinese AI developer Z.ai raised its year-end annual recurring revenue outlook to US$3 billion from about US$2.4 billion after a recent US$5 billion fundraising eased near-term computing constraints, the company said in an investor call.

Executives said annual recurring revenue, a metric that annualizes subscription income, had reached US$1.8 billion so far this year.

Z.ai said proceeds from its share placement and convertible bond sale would be used to expand computing capacity for model training and meet rising demand for its AI services.

Z.ai, also known as Zhipu AI, is a China-based AI company that offers tools for developers to build with its GLM AI models through an application programming interface platform.

The funding comes as US export controls have targeted advanced semiconductors shipped to China, limiting Chinese AI companies’ access to high-end chips used for AI training.

🔗 Source: South China Morning Post

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