Z.ai shares surge 8% after releasing new AI model running only on Chinese chips
Context:
Z.ai released GLM-5.3-Flash, a low-cost model claimed to run entirely on domestically made Chinese chips, and surrounding claims helped lift its Hong Kong-listed shares by about 8%. The company says 100,000 China-made chips handle all online requests, with the model released on Aug. 20 under the code name Ox Alpha and ranking first in usage on the OpenRouter platform last week. CNBC could not independently verify the chip claims, and Z.ai declined to reveal the chipmakers involved. The development sits within a broader push by China to boost domestic semiconductors and AI capabilities amid U.S. restrictions, with rivals like MiniMax also posting notable moves as markets anticipate earnings and strategic progress.
Dive Deeper:
GLM-5.3-Flash is described as a lower-cost iteration of Z.ai's flagship model and is claimed to operate entirely on homegrown semiconductors. The company states that all online requests for the model run through hardware built in China, with the August 20 release under the code name Ox Alpha.
Z.ai asserts that roughly 100,000 China-made chips were used to support the model's operations, including its public rollout. The model reportedly led usage on the global OpenRouter platform for the past week, signaling broad early adoption.
CNBC did not independently verify the chip claims, and Z.ai did not disclose specific chip suppliers or partner details. The lack of independent confirmation adds a degree of caution to the hardware narrative surrounding the launch.
The broader context notes the ongoing U.S.-China dynamics over AI and semiconductor access, with Huawei and other Chinese firms accelerating domestic chip and AI development to reduce dependence on foreign technology.
Z.ai is scheduled to report first-half results on Monday, while its stock performance has surged since its IPO earlier in the year, outpacing some peers with more than an 800% rise.
Competitor MiniMax also moved higher in Hong Kong after reporting a 283% year-over-year surge in revenue for the first half, though its adjusted net loss more than doubled to about $293 million, illustrating a mixed path to profitability in the sector.