News / US / cnbc
Z.ai Shares Rally as New AI Model Runs Exclusively on Domestic Chinese Chips
Technology Services · Internet Software/Services · cnbc · 2026-08-27
2513-HK, 100-HK, ZLAB, NVDA
Z.ai stock jumped over 8% after the company launched a new AI model, GLM-5.3-Flash, which it claims operates entirely on homegrown semiconductor hardware.
What Happened
Technological Milestone: Chinese AI firm Z.ai has introduced its GLM-5.3-Flash model, which reportedly functions using only domestically produced semiconductors. The company stated that 100,000 China-made chips were utilized to manage all online requests for the model since its initial rollout under the code name 'Ox Alpha'.
Market Performance: Shares of Z.ai surged more than 8% in Hong Kong trading following the announcement of the new model's performance. The company's stock has seen a dramatic rise of over 800% since its initial public offering in January, significantly outperforming its local competitor MiniMax.
Competitive Landscape: Rival firm MiniMax also saw its shares rise by approximately 3% after reporting a 283% revenue increase for the first half of the year. While MiniMax's M3 model currently ranks 18th on the Artificial Analysis Intelligence Index, Z.ai's latest offering has secured the 10th position, ahead of DeepSeek V4 Pro Max.
Strategic Context: This development highlights China's ongoing push for technological self-sufficiency amid tightened U.S. export restrictions on advanced semiconductors. While Z.ai has not disclosed specific chip suppliers, the move underscores the growing capability of domestic alternatives to Nvidia hardware in the Chinese AI sector.