Zhipu AI, a Chinese startup with a large team of generative AI experts, has received funding from Prosperity7, a Saudi fund that is part of the state-owned oil group Saudi Aramco. The new investment comes after the company faced challenges due to growing US restrictions on Chinese AI development. Previous investors in the company include Alibaba Cloud, Tencent, and state funds like the National Social Security Fund.
The US has imposed restrictions targeting China’s AI development, including limiting access to advanced AI chips and restricting US investment in the sector. Tensions between Washington and Beijing have been rising over issues like AI chips, with the Biden administration reportedly considering stricter rules to prevent Chinese buyers from purchasing crucial hardware. In response, Chinese officials have encouraged tech giants to buy domestically-made AI chips, with companies like ByteDance instructed to reduce spending on foreign-made chips.
The new investment from Saudi Arabia in Zhipu AI may indicate that the kingdom is seeking to diversify the global AI industry and avoid reliance on Silicon Valley. With major players like Meta, Microsoft, and OpenAI based in the US, Saudi Arabia may be looking to establish its own presence in the industry and compete for market share.
However, representatives for Aramco and Zhipu AI have not yet commented on the recent investment. Requests for comment made outside of normal working hours have gone unanswered.
