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