Zhipu shares surge 37% as firm builds giant data centre powered by Chinese chips
Shares of Chinese AI giant Zhipu.ai, also known as Zhipu, surged 37 percent in Hong Kong on Tuesday, closing at HK$1,219 (US$155). This significant rebound follows a week-long drop of over 40 percent in the company’s share prices. The surge is attributed to Zhipu’s recent completion of a massive 1-gigawatt (GW) AI computing center. This new facility is entirely powered by Chinese chips and will be instrumental in training and deploying the company’s advanced GLM models, signaling a major step in Zhipu’s AI development capabilities.
Zhipu’s successful deployment of a large-scale AI computing center, powered exclusively by Chinese chips, marks a critical development in Asia’s technology landscape. This move underscores China’s accelerating efforts towards self-sufficiency in advanced computing infrastructure, particularly in the face of ongoing geopolitical tensions and restrictions on access to foreign semiconductor technology. The 1-gigawatt capacity suggests a substantial investment in domestic AI capabilities, positioning Zhipu to enhance its GLM models and compete more effectively in the global AI arena. This also reflects a broader trend within the Chinese tech ecosystem to localize critical components and reduce reliance on external supply chains, fostering a more resilient domestic industry.
The market’s positive reaction, with shares surging despite a recent downturn, indicates investor confidence in Zhipu’s strategic direction and the potential for homegrown AI solutions. This development will likely spur further investment in domestic chip manufacturing and AI infrastructure across China, potentially creating new opportunities for local hardware and software providers. For the wider Asian tech ecosystem, Zhipu’s progress could inspire other regional players to explore similar localization strategies, driving innovation and competition in the development of AI and high-performance computing facilities.
