Saudi fund Prosperity7 invests in China's Zhipu AI, challenging US dominance in generative AI

From Financial Times: 2024-05-31 00:01:09

Saudi Arabian fund Prosperity7 has invested in China’s Zhipu AI, valuing the start-up at $3bn. This marks the first significant foreign investment in China’s generative AI sector, challenging US restrictions. The move demonstrates Saudi Arabia’s desire to counter Silicon Valley’s dominance in AI. Zhipu aims to expand globally with foreign support.

Saudi state investors are collaborating with Chinese tech firms to access new capital and markets. Lenovo secured $2bn from a Saudi subsidiary, setting up headquarters in Riyadh. US pressure on countries supporting China’s tech sector is intensifying. G42 sold its stakes in Chinese tech companies under US scrutiny. The Saudis are wary of displeasing Washington and aim to grow a domestic semiconductor industry.

Zhipu is China’s largest generative AI start-up with over 800 employees in Beijing. It focuses on selling its “AI-in-a-box” product for data protection. Founded by Tang Jie, formerly of Tsinghua University, Zhipu is backed by Alibaba Cloud and Tencent. Prosperity7’s investment in Zhipu indicates its support for AI advancements.



Read more at Financial Times: Saudi fund invests in China effort to create rival to OpenAI