Analysis of Zhipu AI's Hong Kong IPO Impact on Valuation and Competitors

Based on the information I have gathered, let me analyze the impact of Zhipu AI’s Hong Kong IPO on its valuation and competitors:

Beijing Zhipu Huazhang Technology Co., Ltd. (Zhipu AI) passed the Hong Kong Stock Exchange listing hearing on December 17, 2025, marking an important milestone in China’s AI sector. Founded on June 11, 2019, with headquarters in Beijing, Zhipu AI is an AI technology company with Tsinghua University background.

According to data, Zhipu AI achieved revenue of $42 million in 2024, and its revenue is expected to double in 2025 [1]. This rapid growth is mainly due to the successful commercialization of its GLM series large models.

Zhipu AI’s IPO comes at a time when global AI companies are valued highly. For comparison:

• OpenAI is valued at over $500 billion [1]
• Anthropic is valued at $300-350 billion [1]
• xAI is valued at approximately $200-230 billion [1]

Although Zhipu AI’s specific valuation has not been disclosed, as the “first Chinese AI stock”, its listing will provide an important pricing reference point for the market.

Zhipu AI’s successful IPO will inject a shot in the arm for the entire Chinese AI industry, proving investors’ confidence in the commercialization of AI technology. This may drive more AI companies to seek IPOs or financing.

As the first Chinese AI large model company listed on the Hong Kong Stock Exchange, Zhipu AI will establish a valuation benchmark to help other AI companies better understand market expectations and investor preferences.

After listing, Zhipu AI will obtain more funds for R&D and market expansion, which may increase competitive pressure on the AI businesses of tech giants like Baidu, Alibaba, and Tencent.

With more capital, Zhipu AI will be able to offer more competitive compensation packages, potentially intensifying the competition for AI talent.

Zhipu AI’s GLM series models directly compete with Baidu’s Wenxin Yiyan and Alibaba’s Tongyi Qianwen. The financial advantage after listing may accelerate technological iteration.

Oversight from the public market will push Zhipu AI to focus more on sustainable business models, which may drive the entire industry toward a healthier direction.

• Policy Support
  : The Chinese government strongly supports the development of the AI industry
• Market Potential
  : The Chinese AI market is still in its early stage with huge growth potential
• Technological Leadership
  : Zhipu AI has advantages in open-source models

• Valuation Bubble
  : Current AI company valuations are generally high, with a risk of correction
• Intensified Competition
  : Domestic and foreign giants are increasing their AI investments
• Regulatory Uncertainty
  : Regulatory policies for AI technology are still being improved

Zhipu AI’s Hong Kong IPO is not only an important milestone in the company’s development but also a key sign of the maturity of China’s AI industry. Its listing will provide the market with the first public valuation reference for Chinese AI companies, having a profound impact on the entire industry. In the short term, it may stimulate more AI companies to seek IPOs; in the long term, it will promote the Chinese AI industry toward a more standardized and competitive direction.

Investors should pay attention to Zhipu AI’s performance after listing, which will provide an important reference for evaluating the investment value of other Chinese AI companies. At the same time, they should also be alert to the potential valuation bubble risk in the AI field.

[1] Bloomberg - “Zhipu Grows Revenue and Users on Path to China’s First AI IPO” (https://www.bloomberg.com/news/articles/2025-12-02/zhipu-grows-revenue-and-users-on-path-to-china-s-first-ai-ipo)
[2] WSJ - “Moonshot AI Nears New Funding Round, Valuation Could Reach About $4 Billion” (https://cn.wsj.com/articles/chinas-moonshot-ai-raising-fresh-funds-that-could-value-it-at-about-4-billion-0216a228)
[3] Jinling AI Data - Market Valuation Analysis