Goldman Sachs Bets on Zhipu AI Over Giants

Goldman Sachs has pinpointed three preferred Chinese artificial intelligence models, notably highlighting Zhipu, also known as Knowledge Atlas, which is publicly traded. Initiating coverage with a price target of 1,880 Hong Kong dollars, Goldman Sachs sees nearly 15% potential upside for Zhipu. The company's stock has experienced significant growth since its January listing in Hong Kong.

Zhipu's GLM-5.2 model has garnered attention for its performance, considered comparable to Anthropic's Fable 5 on several metrics. Analysts are optimistic about Zhipu's extensive adoption by coders, predicting continuous model upgrades and a solidified leading position in enterprise and coding sectors within China.

Beyond Zhipu, Goldman Sachs' other favored AI model companies are Deepseek and ByteDance, both of which are privately held. The selection was based on factors including market entry speed, arena scores, and valuation. Zhipu's and DeepSeek's models generally outperformed those from Alibaba, Tencent, and Minimax in key areas.