Following the US sanctions, the Chinese artificial intelligence startup Zhipu AI attracted attention with the investment it received from the state. The Chinese government provided millions of dollars in funding to the company. Zhipu AI, a Chinese artificial intelligence startup, secured 500 million yuan (69.04 million dollars) in funding from the state-owned Huafa Group. The company had announced a 1 billion yuan capital increase last week. Zhipu and its subsidiaries were added to the US Department of Commerce’s export control entity list in January, prohibiting it from sourcing components from the US. This investment was the latest example of local governments in China supporting artificial intelligence companies. Established in 2019, and widely backed by technology giants such as Tencent, Meituan, and Xiaomi, Zhipu AI had a valuation of 20 billion yuan in a financing round in July 2024. In a statement, Huafa mentioned that the new capital would be used to advance the technological innovation of the GLM business model.