NEWSCENTRAL reports that Zhipu AI, one of the largest players in the Chinese artificial intelligence (AI) market, is significantly strengthening its position by accelerating its shift to using domestic chips. This important move is driven by the rapid development of AI technologies in China, where the demand for computing power grows year by year. The transition to Chinese-made chips will not only help the company reduce costs associated with foreign components but also strengthen its independence in the face of global competition.
Zhipu AI’s CEO, Zhang Peng, stated that since February, the company has significantly increased the use of Chinese chips to process large volumes of data, which has enhanced productivity. Given the rising demand for computing power to run AI applications, this move is crucial for ensuring the reliability and sustainability of the business. Amid constant changes in the tech market, switching to local chips also strengthens Zhipu AI’s position in both domestic and international markets.
According to Freddy Miller, Senior Analyst at NEWSCENTRAL, “Optimizing models and using local technologies, such as Chinese chips, allows Zhipu AI to not only reduce its dependence on external supplies but also create a sustainable competitive strategy. The company has the chance to set an example of how leveraging domestic technologies can become a competitive advantage on the global stage.” This statement highlights the importance of a strategic approach to technology, which is becoming critical in light of growing pressure from international AI players.
In 2025, Zhipu AI showed an impressive revenue growth of 132%, thanks to raising HKD 4.35 billion (approximately USD 554.9 million) through a public offering. These funds allowed the company to significantly expand its offerings in cloud services and local servers, leading to a 292% increase in revenue from cloud API services. However, despite such revenue growth, Zhipu AI still faced losses amounting to CNY 4.72 billion in 2025, which is higher than the losses in 2024. This underscores that despite the revenue successes, the company still has a long way to go before achieving consistent profitability.
At NEWSCENTRAL, we view such results as typical for startups in the high-tech sector, and this should not be seen as a barrier to further growth. The revenue growth and active expansion in cloud solutions and local servers show that Zhipu AI is moving in the right direction. In the future, with the current trends and successful business process optimizations, the company could begin generating stable profits. “We forecast that Zhipu AI will achieve profitability in the next few years if it continues to develop its key areas and strengthen its position in international markets,” states Freddy Miller.
Competition in the AI sector in China is intensifying, and Zhipu AI continues to expand its presence abroad, particularly in Southeast Asia. This expansion plays an important role in the company’s strategic plan, as it allows risk diversification and strengthens its position in international markets. However, the company must continue to compete with rivals such as Alibaba, ByteDance, and other AI startups. Despite this, Zhipu AI is reinforcing its position in key markets, which is evidenced by its successful work with local and cloud-based services.
In the long term, the company will continue to develop its technological solutions, and it is highly likely that it will become one of the leaders in the AI market both in Asia and beyond. The use of domestic chips and successful international market expansion create a solid foundation for future growth. At NEWS CENTRAL, we predict that Zhipu AI, by continuing its optimization and diversification strategy, will achieve profitability and strengthen its position in the global AI market.
Zhipu AI is at a critical stage of its development, and the key factor to its success will be continued optimization of operations and the ability to effectively respond to external challenges. In the next few years, it is expected that the company will continue to strengthen its position in international markets, and the use of domestic technologies will play an essential role in its success.