Shares of China AI 'tiger' Zhipu surge 35% after revenue doubles in first earnings report

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Shares of Chinese artificial intelligence company Knowledge Atlas Technology JSC, better known as Zhipu, surged as much as 35% on Wednesday, after posting strong revenue growth in its first earnings report.

The Beijing-based company later pared gains but was still up roughly 30% in afternoon trading. Listed in Hong Kong in January following a $558 million initial public offering, Zhipu was the first major pure-play AI model company in China, and arguably the world, to go public.

Zhipu said in its earnings report released Tuesday that its revenue rose about 132% to 724 million yuan in 2025 from the previous year, though that figure missed the mean analyst estimate of 760 million yuan, polled by Reuters.

The firm reported a net adjusted loss of 3.18 billion yuan, up 29.1% from the previous year, as research and development spending increased.

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Founded in 2019 by researchers from Tsinghua University, Zhipu recently released its latest GLM-5 model, which it said ⁠matched U.S. rivals on several key performance metrics.

Strongly backed by Beijing, Zhipu is considered one of China’s so-called “AI tigers” — startups building large language models to rival the likes of OpenAI and Anthropic — making it a strong barometer for China’s overall AI space.

In an earnings call, Zhipu AI CEO Zhang Peng reportedly said that ​the company was accelerating its use of domestic Chinese chips to meet a ‌significant rise in computing demand since February, aligning with Beijing’s push to develop its domestic semiconductor industry.

The CEO’s comments were notable as the firm’s ability to train its AI models was previously constrained by U.S. export restrictions, limiting its access to advanced semiconductor technology and expertise.

Zhipu was also placed on the U.S. Commerce Department’s Entity List in January last year over alleged links to China’s military.

Shares of MiniMax, a Chinese AI rival of Zhipu that also listed in Hong Kong in January, were up about 16% in trading on Wednesday.

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