Zhipu AI, a leading Chinese generative AI startup, has announced the initial closing of its Zhipu Ecosystem Fund, raising 1.5 billion yuan (US$211 million) from various state-backed and private investors. Notable contributors include the Beijing municipal government’s Shijingshan District fund, Fuzuo Capital, Yanbei Capital, and Guangdong Aofei Data Tech. This investment aims to bolster Zhipu’s ecosystem and compete in China’s rapidly growing generative AI market, which has seen the emergence of over a hundred large language models. The move mirrors strategies employed by OpenAI, the creator of ChatGPT.