Zhipu AI's Deepseek-like breakout

Summary

CNBC's Deirdre Bosa reports on Zhipu AI, a top-ranking Chinese AI startup whose coding assistant has seen viral demand and a subscription cap. She says Chinese AI models are showing a DeepSeek-like breakout, especially in open-source models, with seven of the top ten open-source models Chinese. She also flags progress on the hardware side, including Huawei chips and recently public Chinese AI hardware upstarts, warning investors to watch for another DeepSeek-like surprise.

• Deirdre Bosa reports Zhipu AI's coding assistant went viral and traffic jumped fivefold.
• Zhipu capped subscriptions to maintain performance amid high demand.
• Zhipu's GLM 4.7 ranks sixth in coding, and the model was trained on Huawei chips.
• Open source is becoming China's AI edge, with seven of the top ten open-source models Chinese.
• Chinese AI labs are making real progress, suggesting DeepSeek was not a one-off.
• The hardware side is also advancing, including Huawei and recently public upstarts like Moore Threads and MetaX.
• Investors should watch for another DeepSeek-like market surprise.
• The S&P was roughly flat for the week, the Dow was up, the VIX was below 16, and bond yields were sticky.