Z.AI Revenue Soars Nearly 400% on API Demand, Shares Climb

Shares of Z.AI Co (HK:2513) rose in Hong Kong trading after the Chinese artificial intelligence company reported a nearly 400% surge in revenue for the first half of the year, driven by explosive demand for its cloud and API services.

According to its interim results, the company's Hong Kong-listed shares climbed 2.9% to HK$1,230.0 in Tuesday morning trading.

Stellar Revenue Growth

Z.AI, also known as Zhipu AI, announced that its revenue for the six months ending June 30 reached 953.9 million yuan ($142 million), a 399.7% increase from the same period a year earlier. The company's gross profit also saw significant growth, rising 163.7% year-over-year to 251.6 million yuan.

Despite the top-line growth, the company remains in an investment phase. Its net loss narrowed by 12.1% to 2.07 billion yuan, while its adjusted net loss widened by 12.1% to 1.96 billion yuan. Research and development spending increased by 33.6% to 2.13 billion yuan as Z.AI continued to invest heavily in its GLM large-language models.

API Services Fuel Expansion

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The primary driver of Z.AI's growth was its open platform and API segment, which saw revenue surge an incredible 27-fold to 825.2 million yuan. This business line now accounts for 86.5% of the company's total revenue, a dramatic shift from just 15.2% a year prior, signaling strong market adoption of its AI tools by developers and enterprises.

Other key performance indicators from the report include:

• Enterprise-agent revenue: Jumped 304.4% to 55.6 million yuan.
• MaaS platform users: Reached more than 7.4 million enterprise and developer users.

This growth follows the company's release of its GLM-5.3 and GLM-5.3-Flash models in August, indicating continued momentum in product development and user acquisition.