Zhipu AI Stock Rises After Lock-Up Expiry as IPO Valuation Question Looms

Zhipu AI, one of China's leading large language model companies, saw its stock open lower but recover through the trading day on its lock-up expiration date, drawing market attention to the company's IPO prospects. Since its listing, Zhipu's share price has surged over 12-fold, earning it the nickname "12x bull stock" among Chinese investors.

Lock-up expiration days typically allow early investors and insiders to sell their shares on the open market, often creating downward price pressure. Despite opening lower, Zhipu's stock recovered during the session, suggesting sustained investor confidence in the company's long-term value.

However, market analysts point out that Zhipu's sky-high valuation could become a significant obstacle in its A-share IPO process. As an AI model company that has not yet achieved large-scale profitability, Zhipu's valuation already far exceeds many traditional tech enterprises, which may face challenges under mainland China's capital market pricing frameworks.

Zhipu AI is one of China's "Six Little Tigers" of large language models, incubated by a Tsinghua University team. It has developed the GLM series of models and completed multiple funding rounds backed by internet giants including Meituan, Alibaba, and Tencent, as well as state-owned capital.

The valuation of AI model companies remains a global challenge. While overseas peers like OpenAI and Anthropic continue to see their private-market valuations climb, most have yet to establish stable, large-scale revenue models — creating a persistent gap between high valuations and profitability reality.

Key questions ahead: Can Zhipu successfully navigate its A-share IPO process? Will regulators and secondary-market investors accept its current valuation level? And when will China's large model companies prove their business models are sustainable?