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Zhipu AI Launches Free AI Agent, Heats Up China’s Tech Race

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Chinese AI startup Zhipu AI has unveiled a free-to-use AI agent named AutoGLM Rumination, further intensifying the fast-growing artificial intelligence competition within China’s tech industry. The announcement was made by CEO Zhang Peng during a launch event in Beijing on Monday.

AutoGLM Rumination is capable of executing complex tasks such as deep research, web browsing, travel planning, and writing research reports. It is powered by Zhipu’s proprietary models — the reasoning model GLM-Z1-Air and the foundation model GLM-4-Air-0414. According to the company, GLM-Z1-Air rivals DeepSeek’s R1 in output quality but operates up to eight times faster, while demanding significantly less computing power — just one-thirtieth of the resources.

AI agents like AutoGLM are designed to autonomously perform tasks and make decisions, and their popularity is rapidly rising as firms strive to commercialize AI tools in practical, real-world settings. The move by Zhipu comes on the heels of Manus launching what it claimed was the world’s first general AI agent — albeit at a premium price of up to $199 per month. In contrast, Zhipu is offering its agent completely free via its official website and mobile app.

Founded in 2019 as a spinoff from a Tsinghua University laboratory, Zhipu AI has rapidly gained momentum and recognition. Its GLM series of large language models, particularly GLM4, are reported by the company to outperform OpenAI’s GPT-4 on several benchmarks.

This latest product launch is buoyed by a wave of government-backed support, with the company securing three rounds of funding in one month. The most recent came from the city of Chengdu, which invested 300 million yuan ($41.5 million) into Zhipu.

As the AI ecosystem in China accelerates, Zhipu’s free access model could prove disruptive — democratizing access to advanced AI tools while pushing other domestic rivals and global players to adjust their pricing and strategies.

Huawei Nears Revenue Peak Again, Signals Post-Sanctions Comeback

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Huawei is set to announce its full-year financial results, revealing a near-return to its 2020 revenue peak despite years of U.S. sanctions. The Chinese tech giant is expected to report revenues of 860 billion yuan ($118 billion) for 2024—just shy of the record 891 billion yuan it achieved before U.S. restrictions slashed its consumer business and chip supplies.

Once in “survival mode,” Huawei now appears to be thriving again. The company has diversified into new sectors like smart driving technology, cloud software, and domestic chip development. These efforts have helped mitigate the impact of sanctions that once seemed poised to cripple its international business.

Smartphones and Software Recovery
Consultancy Isaiah Research estimates Huawei shipped over 45 million smartphones in 2024—up more than 25% year-on-year—despite continued constraints in chip yield rates. Its homegrown operating system, HarmonyOS, now powers over a billion devices. Meanwhile, Huawei’s own enterprise software system, “MetaERP,” has replaced U.S.-origin platforms like Oracle.

Auto Ambitions Paying Off
One of Huawei’s most successful pivots has been into smart vehicles. Its Aito brand—developed with Dongfeng-backed Seres—tripled its sales last year, driven by models like the M7 and M9 that feature Huawei’s driver assistance technologies. The company is also collaborating with other Chinese automakers like Chery, BAIC, JAC Group, and SAIC Group.

Innovation Under Pressure
Experts say sanctions pushed Huawei and its domestic partners toward greater innovation. “Huawei has shown incredible resilience in the face of this national state-led effort,” said Paul Triolo of the DGA-Albright Stonebridge Group. He noted that Huawei’s resurgence has led to broader industry collaboration and technological independence within China’s IT sector.

Looking Ahead: Global Patchwork Strategy
While HarmonyOS and its AI chips are gaining traction, Huawei still faces challenges regaining market share in the West due to limited access to Android. However, its infrastructure and data services are growing in markets like the Middle East. Huawei’s global strategy will likely be a “patchwork affair,” said Triolo, but it could dominate in alternative AI ecosystems across key emerging markets.

Beyond Survival
With ambitions to integrate AI into industrial communication systems and expand its connected software offerings, Huawei’s focus is now on long-term growth. It also hinted at renewed international smartphone pushes, such as its high-profile Mate XT foldable phone launch in Malaysia earlier this year.

Alibaba to Restart Hiring Amid Optimism, Cautions Against AI Investment Bubble in the U.S.

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Alibaba Group Chairman Joe Tsai announced on Tuesday that the tech giant will resume hiring, fueled by increased confidence following a significant meeting between President Xi Jinping and major Chinese tech entrepreneurs in February. Tsai also expressed concerns about large-scale artificial intelligence (AI) investments in the U.S., suggesting they might signal the start of a bubble.

Tsai praised the rare meeting, which included Alibaba co-founder Jack Ma, marking a shift in Beijing’s approach to the tech sector. A regulatory crackdown on the industry several years ago had slowed growth, reduced investment, and led to layoffs. Tsai believes the meeting sent a clear message to the business community: it was time to reinvest and rehire employees.

After a decline in Alibaba’s workforce over the past 12 quarters, Tsai is optimistic that the company has hit rock bottom and plans to start rebuilding. China’s economy has faced several challenges, including slow growth and a real estate debt crisis, leading to job insecurity and weak consumer sentiment. However, Tsai emphasized that hiring would lead to greater job security and income growth, boosting business and consumer confidence.

Tsai also highlighted the success of DeepSeek, a Chinese startup disrupting the AI sector with affordable models, which has helped restore confidence in China’s tech industry. This success, alongside Alibaba’s significant investments in AI, will likely drive the need for more hiring in the sector.

While Alibaba is investing heavily in AI, Tsai expressed concern about the massive investments happening in the U.S. He referred to large investment figures, such as $500 billion, as unnecessary, suggesting that investments are being made ahead of actual demand. Tsai specifically voiced worries about speculative data center construction, seeing signs of a potential bubble in the U.S. market.

In comparison, Alibaba plans to invest 380 billion yuan ($52 billion) in its cloud computing and AI infrastructure over the next three years. The positive sentiment around China’s tech sector, boosted by Xi’s meeting and the success of companies like DeepSeek, has contributed to a 24% rise in Hong Kong’s Hang Seng Tech Index this year.