Emerging Technology
US Gov Blacklists Tencent-Backed AI Startup As It Aims To Beat China In AI Race
By TechDogs Bureau

Updated on Thu, Jan 16, 2025
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In addition to investing money into companies engaged in generative artificial intelligence (GenAI) space, along with other financial incentives, the US government is making note of the outgoing infrastructure powering the technology—GPUs (Graphics Processing Units).
As a result, the government has imposed bans on the export of GPUs made by American companies, which includes NVIDIA, the undisputed leader of the AI-era GPUs, as well as other manufacturers based in the country.
To export chips to companies in countries such as China, Iran, Russia, and North Korea, manufacturers need special licenses, even after which, they can’t send out their latest chips.
This move came a long time ago.
Now, the United States Department of Commerce’s Bureau of Industry and Security (BIS) has updated its list of blacklisted companies that restrict chipmakers from selling their in-demand products.
Revealed through a pdf document published on Federal Register’s website, the BIS added eleven new entities to its trade-restrictions blacklist, including startup Beijing Zhipu Huazhang Technology Co., Ltd., better known as Zhipu.
“These entities have been determined by the US Government to be acting contrary to the national security and/or foreign policy interests of the United States,” reads the document.
Zhipu, which was valued at almost $3 billion last year, is backed by WeChat owner Tencent Holdings Ltd., as well as Alibaba Group Holding Ltd.
Added to the list was also Beijing Keyi Hongyuan Optoelectronics Co., Ltd., Beijing Lingxin Intelligent Technology Co., Ltd., Beijing Yuanyin Intelligent Technology Co., Ltd., Beijing Zhipu Future Technology Co., Ltd., Beijing Zhipu Linghang Technology Co., Ltd., Beijing Zhipu Qingyan Technology Co., Ltd., Hangzhou Zhipu Huazhang Technology Co., Ltd., Nanjing Zhihu Information Technology Co., Ltd., Shanghai Zhipu Huanyu Technology Co., Ltd., and Shenzhen Zhipu Future Technology Co., Ltd.
This move came as the US agency claimed that the company was developing AI used in advancing Chinese military forces.
However, Zhipu isn’t happy with the assessment by disagreeing with it and saying the US government’s decision lacks facts.
Through a statement put out on the company’s WeChat account Zhipu said (translated excerpts), “Beijing Zhipu Huazhang Technology Co., Ltd. (Zhipu) has noticed that the Bureau of Industry and Security (BIS) of the U.S. Department of Commerce intends to add Zhipu and its subsidiaries to the export control entity list.”
“This decision lacks factual basis and we strongly oppose it.”
“Zhipu was transformed from the achievements of Tsinghua University. As China's earliest large-scale model company, it has invested in the research and development of the GLM pre-training architecture since 2020.”
“Given the fact that Zhipu has mastered the core technology of full-link large models, being included in the Entity List will not have a substantial impact on the company's business. Zhipu has the ability and will be more focused on providing our users and partners with world-class large-model technology, products, and services.”
“At the same time, the company will continue to participate in the global artificial intelligence competition, adhere to the highest security standards and the principles of fairness, transparency, and sustainability, and promote the development of artificial intelligence technology.”
Ahead of this, the BIS also revised its entry for India’s Department of Atomic Energy, listing a range of entities such as Nuclear reactors (including power plants) not under International Atomic Energy Agency (IAEA) safeguards, (excluding Kundankulam 1 and 2), Fuel reprocessing and enrichment facilities, and Heavy water production facilities and their collocated ammonia plants.
Do you think the US is correct in its assessment of these companies and should safeguard its interests or do you think such restrictions will be counterproductive to the growth of artificial intelligence around the world?
Let us know in the comments below!
First published on Thu, Jan 16, 2025
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