Z.ai Closes In On $1 Billion In Annual Sales, Set To Become First Independent Chinese AI Firm To Hit Milestone

Z.ai is closing in on $1 billion in annual sales, positioning it to become the first independent Chinese AI firm to hit the milestone, fueled by a sixtyfold surge in API revenue and aggressive open-sourcing of its most powerful models — though it remains lossmaking and heavily reliant on state-owned buyers, with profitability not projected until 2028.

• Z.ai, formerly Zhipu, is closing in on $1 billion in annual sales, making it on track to become the first independent Chinese AI firm to reach that milestone, though the figure is a forward projection based partly on annualised recurring revenue.
• The company is driving rapid commercialisation by open-sourcing its most powerful models, including GLM-5.2, while monetising through cloud services, API platforms, and on-premises deployments for state-owned enterprises, with API annualised recurring revenue surging sixtyfold in a single year.
• Despite soaring revenue growth, Z.ai remains lossmaking, relies heavily on state-owned buyers, and carries a valuation of roughly $112 billion, raising questions about whether it can sustain margins and turn its commercial momentum into profitability by its projected 2028 breakeven.