Z.ai's Hong Kong-listed shares surged more than 8% in Thursday trading following the launch of its new AI model, GLM-5.3-Flash, which the company claims operates solely on Chinese-made semiconductors [1]. The model, released on August 20 under the code name 'Ox Alpha,' reportedly used 100,000 China-made chips to handle all online requests and ranked first by usage in the last week on the global OpenRouter platform [1]. GLM-5.3-Flash is positioned as a low-cost version of Z.ai's flagship model and currently ranks 10th on the Artificial Analysis Intelligence Index, ahead of DeepSeek V4 Pro Max [1]. CNBC noted it was unable to independently verify Z.ai's chip claims, and the company declined to disclose which chip manufacturers were involved [1].
The launch underscores China's ongoing push for technological self-sufficiency amid U.S. restrictions on advanced chip sales to China, with domestic companies like Huawei ramping up efforts to build alternatives to U.S. products such as Nvidia chips, which have faced sales challenges in China due to regulatory constraints [1]. Leading U.S. AI models are not officially available in China, further highlighting the importance of homegrown solutions [1].
Rival MiniMax also saw its shares rise by about 3% in Hong Kong trading after reporting a 283% surge in first-half revenue compared to the previous year, although its adjusted net loss more than doubled to $293 million during the same period [1]. MiniMax's flagship M3 model ranks 18th on the Artificial Analysis Intelligence Index [1]. Both Z.ai and MiniMax listed in Hong Kong in January, with Z.ai's shares skyrocketing over 800% since its IPO, while MiniMax shares have climbed more than 80% [1].
Z.ai is scheduled to report its results for the first six months of the year on Monday, which may provide further insight into the company's performance and the impact of its new AI model [1].
CONCLUSION
Z.ai's launch of an AI model powered exclusively by Chinese chips has driven a significant share price increase, reflecting investor optimism about China's push for tech self-sufficiency. The strong performance of both Z.ai and MiniMax highlights robust market interest in domestic AI innovation amid ongoing U.S. restrictions. Upcoming financial results from Z.ai may further influence market sentiment.