A report released on June 25, 2025, indicates that Chinese AI startup Zhipu AI has made progress in securing government contracts across multiple regions, according to OpenAI.

This development underscores China’s efforts to establish itself as a global leader in AI.

Zhipu AI, supported by the Chinese government, provides AI solutions such as large language model infrastructure and hardware.

The company collaborates with Huawei to serve governments and state-owned enterprises in countries including Malaysia, Singapore, the UAE, Saudi Arabia, and Kenya.

It has reportedly received over US$1.4 billion in state funding and maintains close ties with Chinese state entities, according to OpenAI.

Zhipu AI has not yet commented on the report.

In January, Zhipu AI was added to the US Commerce Department’s export control entity list, limiting its access to US components.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ China’s AI export strategy follows a coordinated national roadmap

Zhipu AI’s government contracts are part of China’s long-term AI strategy outlined in the 2017 New Generation Artificial Intelligence Development Plan (AIDP), which explicitly targets global leadership by 20301.

This coordinated approach combines massive state funding with private sector innovation. Zhipu’s $1.4 billion in state investment mirrors how China has mobilized resources, with some regional governments individually committing up to 100 billion yuan (~$14.7 billion) to AI development1.

The targeting of Malaysia, Singapore, UAE, Saudi Arabia, and Kenya reflects China’s strategic focus on establishing AI infrastructure in emerging markets before Western competitors, creating long-term technological dependencies2.

This approach aligns with China’s broader ambition to establish self-sufficient AI capabilities while reducing reliance on American technology, a goal repeatedly emphasized by President Xi Jinping, who has stressed the importance of “securing critical technologies domestically”3.

2️⃣ China’s “National AI Team” model creates formidable competitors

Zhipu AI represents a successful implementation of China’s distinctive “National AI Team” approach, where the government designates and supports specific companies to advance strategic technologies4.