OpenAI has raised concerns over Beijing-backed startup Zhipu AI, calling it a key player in China’s growing artificial intelligence ambitions and a potential rival in the global race for dominance.
In a blog post released Wednesday, the U.S.-based company described Zhipu AI as being “on the front line” of China’s tech expansion and noted its “notable progress” in large language model development. OpenAI highlighted the firm’s state ties, international reach and alignment with Beijing’s strategic goals.
Founded in 2019, Zhipu AI is considered one of China’s emerging “AI tigers,” a term used locally to describe companies advancing homegrown alternatives to Western technology. While DeepSeek has drawn more global attention with its high-profile model launches, OpenAI argues Zhipu’s deeper government links and global expansion warrant closer examination.
The Chinese company has reportedly raised over $1.4 billion through local government funding and maintains regular communication with high-ranking officials, including Premier Li Qiang. OpenAI claims the startup is playing a role in China’s Digital Silk Road initiative, providing AI infrastructure in countries such as Indonesia, Vietnam, Malaysia and the United Kingdom.
“The goal is to embed Chinese standards in emerging markets ahead of Western competition,” OpenAI wrote. It also warned that Zhipu is promoting its systems as secure, transparent and ready for regulatory scrutiny.
Zhipu did not respond to requests for comment, but its chairman Liu Debing said last week that the company aimed to “contribute China’s AI strength to the world.”
The rivalry comes amid rising geopolitical tensions around technology. In May, U.S. President Donald Trump announced a multi-billion dollar AI investment push in the Middle East, including the $500 billion Stargate Project led by OpenAI and major American tech firms. The initiative is expected to launch in the UAE by 2026.
OpenAI has also secured a $200 million contract with the U.S. Department of Defense and launched an AI service aimed at U.S. government agencies.
Zhipu’s military connections led to its addition to the U.S. Commerce Department’s Entity List earlier this year. The firm is also reportedly preparing for an initial public offering, with a previous valuation of nearly $2.8 billion.
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