OpenAI Spotlights Beijing-Backed Zhipu AI as Top Rival

OpenAI is shedding light on an under-the-radar artificial intelligence (AI) startup that it believes is at the forefront of China's quest to dominate the global AI landscape. In a recent blog post, the company identified Beijing-backed Zhipu AI as a significant player in the AI race, marking a shift in the international AI competition.

Zhipu AI, founded in 2019, has rapidly gained prominence in China and is often referred to as one of the country's 'AI tigers.' These are large language model unicorns that Beijing sees as crucial to its efforts to rival the U.S. and reduce its reliance on American technology. While fellow 'AI tiger' DeepSeek has garnered much international attention following the release of its R1 model in January, OpenAI suggests that Zhipu's international expansion and its ties to Beijing deserve closer scrutiny.

The company has secured substantial funding from various local governments, with state media reporting that Zhipu AI leadership frequently engages with Chinese Communist Party (CCP) officials, including Premier Li Qiang. OpenAI estimates that state-backed investments in the startup total over $1.4 billion, underscoring the level of state support.

Zhipu AI's global reach extends beyond China, with offices in the Middle East, the United Kingdom, Singapore, and Malaysia. The company is also involved in joint 'innovation center' projects in Southeast Asia, including Indonesia and Vietnam. This international expansion aligns with China's 'Digital Silk Road' strategy, which aims to integrate Chinese AI systems and standards into emerging markets before U.S. or European rivals can.

OpenAI emphasizes that Zhipu AI's goal is to lock Chinese systems and standards into these markets, presenting a 'responsible, transparent, and audit-ready' Chinese AI alternative. This strategy poses a significant challenge to OpenAI, which has received support from Washington to promote its foundational models as the world's leading AI offering.

Despite OpenAI's claims, Zhipu AI Chairman Liu Debing recently stated that the company aims to contribute China's AI capabilities to the global community. However, Zhipu AI did not immediately respond to OpenAI's specific statements.

The U.S. government and private sector are also making significant investments to counter China's AI ambitions. During a visit to the UAE in May, U.S. President Donald Trump announced over $200 billion in commercial deals, including a project to build an AI campus in the UAE by OpenAI, Oracle, Nvidia, and Cisco Systems. This Stargate UAE AI campus is expected to launch in 2026.

OpenAI has also secured a $200 million contract to provide AI tools to the U.S. Defense Department and launched 'OpenAI for Government,' an initiative aimed at bringing its AI tools to public servants across the U.S. This move underscores the company's strategic importance in the global AI landscape.

Zhipu AI's collaboration with China's military, which has led to its inclusion on the U.S. Commerce Department's Entity List, further complicates the international AI competition. The company has reportedly initiated preliminary steps toward an initial public offering and is valued at 20 billion yuan ($2.78 billion), according to local media reports.

As the global AI race intensifies, the actions and strategies of companies like Zhipu AI and OpenAI will continue to shape the future of artificial intelligence and its impact on international relations and technology.