AI WAR? Alibaba and Tencent Invested 2.5 Billion Yuan in an AI Startup

Chinese tech giants Alibaba Group Holding and Tencent Holdings have jointly invested 2.5 billion yuan ($342 million) in Zhipu, an AI startup based in Beijing.

This investment is part of the growing trend of capital flowing into the AI sector.

Chinese Tech Giants Support

Alibaba and Tencent, along with other prominent Chinese companies like Ant Group, Xiaomi, and Meituan, are supporting Zhipu in its mission to develop domestic alternatives to OpenAI’s ChatGPT.

Zhipu is among several startups in China that are actively working on generative AI technologies, aiming to compete with globally recognised players such as OpenAI and Google.

Zhipu gained initial government approval for a public rollout in August and has since released an open-source model and a chatbot named Qingyan.

US-China AI Competition

The interest in Zhipu and similar startups highlights the broader implications of the increasing competition between the US and China in the field of AI.

AI has the potential to transform various industries, ranging from transportation to media and finance, and could drive a new phase of economic growth.

However, the technology also carries military and government applications, which may further complicate the already tense relationship between Washington and Beijing.


As the US tightens restrictions on Chinese access to advanced chips required for training and running AI models, many Chinese AI developers may seek homegrown alternatives.

This shift could further propel the development of the domestic AI industry in China.

AI’s Transformative Impact

The investment by Alibaba and Tencent in Zhipu underscores the escalating competition in the Chinese AI sector.

Backed by major Chinese tech firms, Zhipu and other startups have the financial backing to compete with leading global AI companies such as OpenAI and Google.

With the ongoing advancements in AI technology, the stakes are undeniably high, given the potential for AI innovation to revolutionise industries and economies on a global scale.

As China and the United States vie for supremacy in AI, the implications extend beyond technology, impacting geopolitics and global economic dynamics.

The current race in the AI sector serves as a testament to the role that AI is set to play in shaping the future of our world.

* Original content written by Coinlive. Coinbold is licensed to distribute this content by Coinlive.