Zhipu AI (Z.ai, 02513.HK), also listed as Z.AI Co, reported first-half 2026 revenue of CNY 953.9 million, or about $142.2 million, up 399.7% year over year and already above its full-year revenue in 2025. Open-platform and cloud revenue from API and subscription-based AI-agent services surged about 27-fold to CNY 825.2 million, lifting that segment’s share of total revenue to 86.5% from 15.2%, while on-premises revenue fell 20.5% to CNY 128.7 million. Gross profit increased 163.7% to CNY 251.6 million, but overall gross margin fell to 26.4% from 50% as inference costs rose with the shift to cloud. Attributable net loss narrowed 12.1% to CNY 2.07 billion, while adjusted net loss widened 12.1% to about CNY 1.96 billion and research and development spending rose 33.6% to CNY 2.13 billion. By Aug. 31, annualized recurring revenue reached $1.6 billion on monthly data and more than $2 billion on weekly data, and the MaaS platform had more than 7.4 million enterprise and developer users. Paid daily active users rose 603%, total token calls increased more than 40-fold and average API pricing rose 101%. Zhipu said GLM-5.3 Flash, with 320 billion total parameters and 18 billion active parameters, was fully served on domestic chip clusters during traffic exceeding 62 trillion tokens, cutting inference costs to one-tenth of its predecessor and 80% from the start of the year. Shares closed 9.63% higher at HK$1,195 when the interim figures were published and later rose 2.9% to HK$1,230.0 by 04:55 GMT on Tuesday, though the stock remains roughly 60% below its June record high. The company is expanding enterprise applications and overseas API operations while developing deeper-reasoning models with fewer active parameters.