Saudi Fund Joins $400 Million Financing for China AI Firm Zhipu

Saudi Arabia’s Prosperity7 Ventures, LLCjoined the latest financing round for up-and-coming startup Zhipu AI, becoming the first known foreign firm to back a major Chinese player in generative artificial intelligence.

The fund, an arm of Saudi Aramco, joined a recent investment that valued the Beijing-based startup at about $3 billion, according to people familiar with the matter, asking not to be identified because the deal hasn’t been publicized.

Beijing is backing a nationwide effort by the likes of Zhipu and Baidu Inc. to develop a domestic answer to ChatGPT, a strategic imperative given AI’s importance to future economies. ...