Chinese AI firm Zhipu AI has secured a 300 million yuan (US$41.5 million) investment from a government-backed fund in Chengdu.

This funding is part of China’s broader push to strengthen domestic AI capabilities.

Founded in 2019 and based in Beijing, Zhipu AI has previously received substantial state-backed funding. Recent investments include support from Zhuhai’s state-owned Huafa Group and a 1 billion yuan (US$138.29 million) round led by Hangzhou City Investment Group Industrial Fund.

The company was valued at 20 billion yuan (US$2.77 billion) in July 2024 and has attracted investments from Tencent, Meituan, and Xiaomi.

With the Chengdu investment, Zhipu AI plans to develop a regional AI model for Sichuan province, “Zhipu Zhuge,” along with AI infrastructure, including a model training center and research facilities.

Meanwhile, the US Commerce Department added Zhipu AI and its subsidiaries to the export control list in January, restricting access to US components.