China’s Z.ai Defies US Sanctions with $1.5B-Backed AI Launch

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2025-07-29 02:30:02

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Beijing-based Z.ai, recently added to the U.S. Entity List, has unveiled two open-source AI models—GLM-4.5 and Air—that outperformed most Western counterparts in global benchmarks. The startup, backed by $1.5 billion in fresh funding from Chinese state funds, is preparing for a Hong Kong listing despite Washington's trade restrictions.

Z.ai's new models merge reasoning and non-reasoning skills into a single architecture, claiming superior efficiency at one-fifth the cost of Western rivals like OpenAI. The company openly criticized OpenAI's product fragmentation in a blog post, positioning its unified approach as a competitive advantage.

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