Zhipu AI Launches Hong Kong IPO Targeting HK$51 Billion Valuation
Beijing Zhipu Huazhang Technology has initiated its initial public offering in Hong Kong, positioning itself to become the first publicly traded company focused primarily on general artificial intelligence (AGI) foundation models in the global capital markets.
The Beijing-based unicorn, widely regarded as a leading domestic challenger to OpenAI, is offering approximately 37.42 million shares at HK$116.2 each, targeting a total capital raise of HK$4.3 billion. The listing, scheduled for January 8, 2026, under the stock code "2513," implies a post-money valuation exceeding HK$51 billion.
The offering has secured robust backing from a heavyweight consortium of cornerstone investors, including Beijing state-owned assets and top-tier insurance funds, who have committed to subscribing to nearly 70% of the offering. This substantial institutional support underscores high market conviction in the generative AI sector, providing stability to the issuance amid a complex market environment.
As China’s largest independent large language model (LLM) developer by revenue, Zhipu’s debut signals a critical maturation point for the country's AI industry, marking a transition from venture capital dependency to public market capitalization. The deal is viewed as a litmus test for investor appetite regarding capital-intensive AGI technology.
Cornerstone Support and Use of Proceeds
The IPO has attracted a diverse group of 11 cornerstone investors who have agreed to purchase approximately HK$2.98 billion worth of shares. Leading the pack is JSC International Investment Fund SPC, a subsidiary of Beijing Financial Holdings Group, alongside funds affiliated with the Tsinghua University Education Foundation, Perseverance Asset Management, Shanghai Gaoyi, WT Asset Management, and Taikang Life Insurance.
According to the prospectus, the company plans to allocate 70% of the net proceeds, or approximately HK$2.9 billion, toward research and development of its general AI foundation models. An additional 10% will be used to optimize its Model-as-a-Service (MaaS) platform, including infrastructure upgrades and the deployment of updated training and inference tools.
Surging Revenue via MaaS Model
Zhipu has established itself as the revenue leader among China's independent LLM developers. According to Frost & Sullivan, the company ranked first among independent developers and second among all general LLM developers in China by 2024 revenue. The company operates on a MaaS business model, generating revenue primarily through API calls that allow enterprises and developers to access its generative AI capabilities.
Financial filings reveal an exponential growth trajectory. Revenue climbed from RMB 57.4 million (US$7.9 million) in 2022 to RMB 312.4 million (US$43.1 million) in 2024, representing a compound annual growth rate (CAGR) of 130%. The momentum accelerated in the first half of 2025, with revenue hitting RMB 191 million (US$26.3 million), a 325% year-on-year increase.
Adoption metrics underscore this expansion. As of the filing, Zhipu's GLM models service over 12,000 enterprise clients and 45 million developers globally. Its paid API revenue now exceeds the combined total of all other domestic models, with its coding-focused subscription product achieving an Annual Recurring Revenue (ARR) of over RMB 100 million (US$13.8 million) within two months of launch.
Heavy R&D Investment
Founded in 2019 with the goal of achieving AGI, Zhipu has maintained an aggressive spending strategy to narrow the technological gap with global peers. The company has developed its proprietary GLM pre-training framework, iterating its foundation models every three to six months. Its latest flagship, GLM-4.7, features enhanced capabilities in coding, long-context planning, and tool coordination.
To sustain this pace, Zhipu invested RMB 2.195 billion (US$303 million) in R&D in 2024 alone. In the first half of 2025, R&D spending reached RMB 1.595 billion (US$220 million). Cumulative R&D investment currently stands at approximately RMB 4.4 billion (US$607 million). As of June 2025, research personnel accounted for 74% of the company's total workforce.
Strategic Backing and Shareholding
Prior to the IPO, Zhipu completed eight rounds of financing, raising over RMB 8.3 billion (US$1.14 billion). The company’s shareholder register features a rare combination of state capital, internet giants, and premier venture capital firms.
Strategic investors include major Chinese technology conglomerates such as Tencent, Alibaba, Meituan, and Xiaomi. Institutional backers include Qiming Venture Partners, Hillhouse Capital, and Sequoia China.
In 2025 alone, the company secured significant strategic investments from state-linked entities, including funds from the Hangzhou and Chengdu governments, as well as a RMB 500 million (US$69 million) investment from Zhuhai Huafa Group, a leading state-owned enterprise in Zhuhai. Following the IPO, the founding team and key holding entities will retain control of approximately 33% of the company's equity.