China’s artificial intelligence (AI) start-up Zhipu AI said on Tuesday that it has raised 3 billion yuan (US$412 million) in a new funding round, beefing up the firm’s war chest as it braces for stiffer competition in the market.
The new financing adds to a funding spree that has seen Zhipu secure four investment rounds so far this year from a long list of marquee backers, from state-backed investment vehicles to Big Tech firms such as Alibaba Group Holding and Tencent Holdings, as well as prominent venture capital funds Qiming Ventures and Legend Capital. Alibaba owns the South China Morning Post.
Zhipu did not disclose its valuation after the latest financing. It was valued at 20 billion yuan after its previous financing round in September, led by Beijing Zhongguancun Science City Innovation Development, a state-backed investment vehicle.
Zhipu’s new funding comes as it has intensified efforts to expand its offerings to fend off domestic competition. Its services include AI solutions for businesses and a versatile chatbot, capable of handing text inquiries and generating images and videos, that caters to individual users and charges for premium access.
Zhipu said it doubled its revenue year on year from January to November, without providing an exact figure.
Zhipu was among the Chinese AI firms engaged in a price war earlier this year to offer discounted application programming interface (API) services for third-party companies to build their AI applications. Selling API access is one way local and foreign AI firms have monetised their services.
Zhipu charges a 39 yuan standard monthly fee for premium access to its ChatGLM, which can summarise articles and write marketing proposals, as well as generate images and video clips. The chatbot is free for basic use.
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