Overview

• Zhipu AI has leveraged more than $1.4 billion in Chinese state backing to win contracts with governments and state-owned enterprises in Malaysia, Singapore, the UAE, Saudi Arabia and Kenya.
• The startup positions itself as a transparent, audit-ready Chinese alternative designed to embed Beijing’s systems and standards into emerging markets before Western rivals.
• After being placed on the U.S. Commerce Department’s export control entity list in January, Zhipu AI cannot procure American components and is reportedly collaborating with China’s military on AI modernization.
• OpenAI launched its “OpenAI for Countries” and “OpenAI for Government” initiatives to help foreign governments and U.S. agencies develop sovereign AI capabilities.
• This month, OpenAI secured a $200 million contract to deliver AI tools to the U.S. Defense Department as part of a broader strategy to counter China’s global AI expansion.