Z.ai Surges as New AI Model Runs Exclusively on Chinese Chips

Chinese AI company Z.ai has made significant strides in its efforts to reduce reliance on foreign semiconductors. The company released a new model, GLM-5.3-Flash, which operates entirely on Chinese-made chips. This low-cost version of the flagship model ranks 10th on the Artificial Analysis Intelligence Index and is currently leading in usage on the global OpenRouter platform.

GLM-5.3-Flash uses 100,000 China-made chips to handle online requests, according to Z.ai. The company declined to share details on which companies' chips it was using. This development comes as China continues to ramp up its domestic semiconductor and AI capabilities in response to US restrictions on the sale of advanced chips.

Nvidia has faced challenges selling its chips to China due to these restrictions, while Huawei and other Chinese companies have been working to build alternatives. Z.ai's shares surged over 8% in Thursday trading following the release of the new model.