Zhipu AI Explores Custom Chip Amid US Export Controls and Surging Demand

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Chinese AI lab Zhipu AI is in early discussions with domestic chip design firms to develop a custom AI processor tailored to its operational needs. The push is driven by explosive growth in its GLM model series — daily token usage reportedly jumped 27-fold in the first week after GLM-5.2's launch — creating an acute compute shortage. A US Commerce Department decision in January 2025 to place Zhipu on its Entity List, combined with existing export restrictions on advanced Nvidia chips, has made compute self-sufficiency a practical necessity rather than a strategic preference. The project is at a nascent stage, with no partner selected yet, and full development could take over two years. The custom chip effort fits into Zhipu's broader ambition to evolve from a model provider into a vertically integrated enterprise AI platform by 2026.

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