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News Topical, Digital Desk : A new story is rapidly being written in the world of AI. The first results were presented, and then the stock market was abuzz. Shares jumped 35% in an instant. Revenue doubled, but the story doesn't end there. Behind this brilliance lies a huge expense and growing losses, revealing the true cost of this AI race. Let's explore the full story in detail...
Imagine a company that existed only in research labs just a few years ago… today it's making waves in the stock market. This is the story of Zhipu.
As soon as the market opened on Wednesday morning, Zhipu's shares rocketed. Within hours, they surged 35%. Investors were excited because the company, in its very first results, showed growth that caught everyone's attention. The company reported a 132% increase in revenue in a year, reaching 724 million yuan. This is considered a significant achievement for any new tech company. However, the market expected a little more, as estimates were for 760 million yuan. But this is where the story gets interesting... While revenue is growing, expenses are also rapidly increasing. The company's losses increased to 3.18 billion yuan. The reason? Massive R&D expenditures. To stay ahead in the world of AI, companies must constantly invest in new technologies – and Zhipu is in the same race. This story began in 2019, when a few researchers from Tsinghua University started it. Hardly anyone would have imagined then that a few years later, this company would become a major player in the global AI race. Recently, the company launched its new model, GLM-5. The company claims that this model is comparable to giants like OpenAI and Anthropic in many respects. But the path hasn't been easy... The US imposed a ban on advanced chips, increasing difficulties for companies like Zhipu. Furthermore, the company was also placed on the US Commerce Department's Entity List, limiting access to technology. Now, the story has taken a new turn... The company's CEO, Zhang Peng, stated that they are now rapidly shifting to domestic chips, made in China. Since February, the demand for AI has increased so much that the need for computing power has also risen rapidly. And not just Zhipu... this story has resonated throughout the market. Shares of its rival, MiniMax, also rose by 16%. The opportunity in the world of AI is huge, growth is rapid... but the path is expensive. Along with the profits, there's also significant investment and risk. The Zhipu story is just beginning. The scale of its future will depend on how quickly and intelligently the company moves forward in this high-tech race.
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