In a significant move within China’s burgeoning AI sector, Alibaba-backed Zhipu AI has initiated preparations for an initial public offering (IPO), setting a precedent as the first among China’s top six AI unicorns to pursue such a venture. This development comes at a time when Alibaba’s various AI initiatives, including Quark AI and Alibaba Cloud, are making substantial strides both domestically and internationally, signaling a robust growth trajectory in the AI industry.
Alibaba’s AI Ventures and Market Impact
Alibaba’s influence in the AI domain continues to expand. The company’s Quark AI has recently surpassed ByteDance’s Doubao, boasting an impressive 150 million monthly users, showcasing the fierce competition within China’s AI ecosystem. This surge in user base for Quark AI underscores Alibaba’s growing prowess in AI applications, particularly in enhancing user engagement and service delivery (Yahoo Finance).
In another significant development, Alibaba Cloud has unveiled a suite of new AI models and infrastructure upgrades aimed at bolstering its offerings for international customers. These include advanced large language models (LLMs) like Qwen-Max and Qwen2.5-Omni-7b, which are now available through Alibaba’s availability zones in Singapore. This expansion reflects Alibaba’s strategic focus on meeting the growing demand for digital transformation worldwide, as highlighted by Selina Yuan, President of International Business at Alibaba Cloud (Computer Weekly).
Zhipu AI’s IPO Preparations and Technological Advancements
Zhipu AI, a leading foundational model startup in China, has commenced preparations for its IPO, marking a significant milestone as the first of China’s six AI unicorns to take this step. Originating from Tsinghua University’s Department of Computer Science, Zhipu has been at the forefront of large language model research since 2020. The company’s notable achievements include co-developing GLM-130B and launching open-source conversational models like ChatGLM. The IPO advisory agreement was signed on March 31, 2025, with the preparatory work beginning in April, setting the stage for a potential listing later in the year (TechNode).
In addition to its IPO preparations, Zhipu AI has recently open-sourced its new GLM 32B/9B series under the MIT license, making these models available for free via its newly launched platform Z.ai. This move not only democratizes access to advanced AI technologies but also positions Zhipu as a key player in the AI ecosystem. The company’s latest inference model, GLM-Z1-32B-0414, claims to be the fastest commercial model in China, offering significant cost advantages over competitors like DeepSeek-R1 (TechNode).
Alibaba Cloud’s Real-World AI Applications
Alibaba Cloud’s AI models are increasingly powering real-world applications across various industries in China. At the AI Dynamics Conference in Beijing, Alibaba Cloud announced that its proprietary LLM, Qwen, has become one of the most widely adopted AI models by enterprises in the country. From autonomous driving to smart healthcare and e-commerce, Qwen and other Tongyi family models are enhancing productivity and customer experiences across sectors (Alizila).
Notable applications include RayNeo’s integration of Qwen into its smart glasses, enabling advanced voice assistance and real-time AR content access. In the retail sector, e-commerce platform Dingdong has utilized Qwen to develop an AI assistant that optimizes logistics and customer support, achieving significant cost reductions. In the automotive industry, NIO leverages Qwen to enhance its smart cockpit experience, while Horizon Robotics collaborates with Alibaba Cloud to optimize autonomous driving model training (Alizila).
Market Reactions and Broader Implications
Amid these technological advancements, the market response has been positive. Alibaba and other major Chinese tech companies like Tencent and Baidu have seen stock gains, reflecting investor confidence despite ongoing trade war risks. The optimism stems from the belief that negotiations between the U.S. and China might eventually lead to a resolution, overshadowing immediate concerns about tariff escalations (Barron’s).
The broader implications of these developments are significant. Alibaba’s continued investment in AI, coupled with Zhipu AI’s IPO preparations, signal a maturing AI ecosystem in China. These moves not only enhance China’s technological capabilities but also position the country as a formidable player in the global AI landscape. As Alibaba Cloud expands its international reach and Zhipu AI democratizes access to its technologies, the potential for AI-driven innovation across industries is vast.
The key takeaways from these developments are clear: Alibaba’s AI initiatives, including Quark AI and Alibaba Cloud, are driving significant user growth and technological advancements. Zhipu AI’s IPO preparations and open-sourcing of its models are set to further catalyze the AI sector in China. Amidst these strides, the market remains optimistic, buoyed by the potential for U.S.-China trade negotiations to resolve ongoing tensions. As these companies continue to innovate and expand, the global AI landscape is poised for transformative change.
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