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 firm Z.ai reported a staggering 400% surge in revenue for the first half of the year, buoyed by a surge in demand for its cloud-based services. Revenue for the half ended June 30 climbed to 953.89 million yuan (US$142 million), with the cloud segment alone surging 2,736% year-over-year to 825 million yuan. This marked a 86.5% increase in the segment's contribution to total revenue, which rose to 86.5% from 15.2% a year earlier.
On-premise deployment revenue, however, fell 20.5% to 128.7 million yuan. Despite higher research and development expenses, total losses narrowed 12.1% to 2.07 billion yuan for the half, while adjusted net loss increased 12.1% to 1.96 billion yuan. R&D spending rose 33.6% to 2.13 billion yuan as the company continued to invest in computing power and model performance.
Z.ai's GLM-5.3 model, launched in August, scored 60 on benchmarking firm Artificial Analysis' Intelligence Index, matching Moonshot AI's highly regarded Kimi K3 model. The company expects full-year sales to expand 514% from last year's 724.3 million yuan. Shares of Z.ai rose 9.63% to HK$1,195 on Monday ahead of the earnings release, though the stock remains down about 60% from its record high.
Written by urgent.news from SCMP Tech's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
