Z.ai Shares Jump on New AI Model Running Entirely on Chinese Chips

Chinese tech company Z.ai announced the launch of a new artificial intelligence model that runs entirely on domestically produced chips, without relying on Western alternatives. The news triggered a sharp rally in the company's shares, which gained roughly 8% as investors reacted to signs of China's progress in reducing dependence on foreign semiconductors. It later emerged that the model had already been quietly used by people worldwide for about a week in a stealth testing phase before the official announcement. The development fits into a broader trend of accelerated growth in China's AI industry amid U.S. export restrictions on advanced chips. For investors, the Z.ai story is another signal that Chinese tech firms are finding ways to compete in AI despite sanctions-related barriers.