Chinese AI firm Zhipu’s shares tumble nearly 23% on computing woes, user complaints
The Hong Kong-listed firm is the first Chinese AI developer to issue a public call urging support for its GLM model
Chinese artificial intelligence company Zhipu AI’s shares fell nearly 23 per cent on Monday, wiping out more than HK$70 billion (US$9 billion) in market capitalisation as concerns mount over the Hong Kong-listed firm’s computing resources constraints.
The stock slump came as Zhipu issued public calls last week to partner with computing resources providers globally, as user complaints about service quality continue to dog the firm despite frenzied investor interest in recent weeks.
The shares closed at HK$560, though they are still up more than 380 per cent since the company’s listing on January 8.
The rare public move underscores the commercial challenges for Chinese AI companies to monetise the increasingly powerful capabilities of their underlying models, as computing constraints limit the number of users their models can serve.
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Known as Z.ai internationally, Zhipu last week issued appeals to both domestic and international inference-compute providers to offer support for its GLM model, offering to share revenue. It was the first time a Chinese AI firm issued a public call seeking computing resources.