After facing US sanctions, Chinese artificial intelligence startup Zhipu AI received significant investment from the state. The Chinese government provided the company with millions of dollars in funding. Zhipu AI, a Chinese artificial intelligence startup, secured 500 million yuan (69.04 million dollars) in financing from the state-owned Huafa Group. The company had announced a 1 billion yuan capital increase last week. Zhipu and its affiliated companies were added to the US Commerce Department’s list of export control entities in January, banning them from sourcing parts from the US. This investment represents the latest example of local governments in China supporting artificial intelligence companies. Established in 2019 and having received investments from tech giants like Tencent, Meituan, and Xiaomi, Zhipu AI was valued at 20 billion yuan in a fundraising round in July 2024. Huafa stated that the new capital would be used to advance GLM’s technological innovation model.