Zhipu AI, a leading startup in AI technology in China, has secured funding of $400 million in a funding round participated in by the Saudi Aramco’s Prosperity7 fund. This investment makes Prosperity7 the sole foreign investor in Zhipu AI, which is valued at around $3 billion.
This investment comes at a time when the artificial intelligence sector in China faces difficulties in obtaining foreign funding due to restrictions imposed by the United States. Zhipu AI is one of the four leading companies in artificial intelligence in China, which previously relied on government support and funding from Chinese cloud service providers.
Prosperity7’s investment in Zhipu AI marks a significant sign of increasing cooperation between Saudi Arabia and China in the technology sector. Earlier this week, the Chinese computer hardware company Lenovo announced plans to sell $2 billion worth of convertible bonds to Saudi Arabia’s Public Investment Fund through its subsidiary, Alat.
A spokesman for Prosperity7 stated: “We believe that Zhipu AI has the potential to become a global leader in generative artificial intelligence. We are excited to partner with them to support their growth and international expansion.”
A financial analyst in Beijing said: “Prosperity7’s investment in Zhipu AI demonstrates Saudi investors’ continued interest in artificial intelligence technology. It also highlights the growing relationship between China and Saudi Arabia in the technology field.”
The investment in Zhipu AI is expected to help the company develop its technologies and expand its international presence. It may also enhance cooperation between Saudi and Chinese companies in the technology sector.
