China’s Z.ai revenue jumps 400% as total losses narrow on explosive cloud gains
Chinese artificial intelligence company Z.ai on Monday reported a 400 per cent increase in first-half revenue, driven by explosive growth in its open platform and application programming interface business, which helped narrow total losses despite higher research and development spending. Revenue for the six months ended June 30 rose to 953.89 million yuan (US$142 million). Full-year sales were…
Chinese AI company Z.ai reported a 400% jump in revenue for the first half of the year, driven by strong growth in its cloud-based services and application programming interface offerings. Despite higher research and development spending, total losses narrowed by 12.1%, though adjusted net loss increased by the same amount. Revenue for the six months ending June 30 reached 953.89 million yuan, with full-year sales expected to grow by 514% from last year.
The cloud segment saw revenue jump 2,736% year-on-year to 825 million yuan, accounting for 86.5% of total revenue, up from 15.2% a year earlier. On-premise deployment revenue fell 20.5% to 128.7 million yuan. Gross profit increased 163.7% to 252 million yuan, with a gross profit margin of 26.4%. Z.ai has been aggressively investing in computing power and model performance, launching several new models in recent months, including GLM-5.3, which scored 60 on an intelligence index.
The company aims to become an agent platform, but faces challenges with computing supply and high inference costs.
Written by urgent.news from SCMP Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
