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