Z.ai shares surge 8% after releasing new AI model running only on Chinese chips

The Zhipu or Z.ai logo appears on a smartphone image dated August 14, 2026.

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Beijing — Chinese artificial intelligence firm Z.ai announced on Wednesday the launch of a new model powered exclusively by home‑grown semiconductor technology.

The recently introduced low‑cost variant, nicknamed GLM‑5.3‑Flash, secured the 10th spot on the Artificial Analysis Intelligence Index, outranking rivals such as DeepSeek V4 Pro Max.

Z.ai’s Hong Kong‑listed shares rose by more than eight percent in Thursday’s trade session.

The company clarified that its updated service relied on 100,000 Chinese‑manufactured chips to process every online request for GLM‑5.3‑Flash, even during the initial rollout on August 20 under the internal codename “Ox Alpha.” The model led weekly usage rankings on the global OpenRouter platform.

Independent verification of the chip claim remains pending, and Z.ai declined to specify the exact supplier pool beyond indicating reliance on domestically produced silicon.

While Nvidia contends to sell processors to China despite U.S.–China diplomatic constraints, Huawei and other Chinese entities are accelerating the development of alternative solutions.

Analyst Ivan Lam of Counterpoint research notes that Z.ai and several additional Chinese AI developers are deepening collaboration across hardware and software domains in response to external restrictions.

“Chinese AI model builders have increasingly dedicated capital and resources to AI server and compute infrastructure that utilizes national chips,” Dr. Lam explained.

China’s intensified efforts to achieve technological self‑sufficiency reflect broader strategic objectives of reducing dependence on sanctioned foreign components while expanding indigenous industrial capacity.

Premier Western AI systems continue to lack official availability within Chinese markets, further highlighting the importance of locally developed technologies.

Competitor Z.ai peer MiniMax saw its shares rise roughly three percent in Hong Kong trading after posting a near‑nine‑fold revenue increase for the first half of the year compared with the prior period.

MiniMax reported an adjusted net loss that more than doubled to $293 million, though its flagship M3 model currently resides at number 18 on the Artificial Analysis Intelligence Index.

Z.ai intends to release its full-year six‑month financial results on Monday.

Both companies are listed in Hong Kong, yet Z.ai’s valuation has surged over 800% since its initial public offering, whereas MiniMax’s growth has reached only above 80 %.

— Jenny Lee, CNBC contributor

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