Shares of Z.ai, the first of China's so-called "AI Tigers" to go public, rose in their Hong Kong debut after a $558-million initial public offering. The generative-AI startup, better known as Zhipu and trading under the name Knowledge Atlas Technology, plans to use a bulk of the IPO proceeds for research and development.

Hong Kong

ZAI, a Chinese artificial intelligence company specializing in large language models, has become one of the first such startups globally to list on a stock exchange, debuting in Hong Kong. The company stated that the IPO was a planned step following early research and commercialization efforts, with 70% of the raised funds earmarked for R&D, including universal foundation models and AI agents.

Initially focused on government and state-owned enterprise clients, ZAI is now expanding into the private sector and cloud-based services, where user numbers have increased significantly. The company offers its AI services at lower prices than US competitors, aiming to offset lower margins with decreasing compute costs and improved competitiveness. ZAI also maintains flexibility in chip sourcing to ensure cost-effectiveness.

Chinese 'AI tiger' Z.ai jumps in Hong Kong debut

let's start with that listing and the rationale for the IPO as well, because you're one of the first LLM startups to be listed globally on a stock exchange. What was behind the decision for going public and why now? We've had some plans for going public since quite early on. Our R&D investments in foundation models and the following commercialization strategy were essentially preparations for an IPO. We started some initial work since last year. Now we achieve the IPO this year. That's more about following the natural progression of steps. How do you plan to spend the money that you've raised through the IPO process? Where do you see it going mostly? The fundraising amount for the IPO is planned based on the company's development strategy. There's two major segments, R&D for foundation models and the following commercialization strategy. 70% of the IPO funds will be allocated to R&D for foundation models, which includes the development of a universal foundation model, the currently highly anticipated intelligence agents and multi-modal systems. About 10% of the funds will be allocated to commercial infrastructure, supporting the foundation model. This includes developing inference tools and models as a service. Additionally, a portion of the funds will be allocated to ecosystem partnerships, and some funds will cover operational expenses or general corporate purposes. As a company, ZAI was initially more focused on government and SOEs, for instance. How do you see that changing and are you looking to build out more partnerships in the private sector instead? The demand from large B2B clients is substantial, which accounts for a relatively high proportion of our current revenue. But we're also seeing that our cloud-based revenue, specifically from our mass platform, is growing rapidly, where we saw user numbers grow tenfold. However, due to its lower pricing, its contribution to total sales revenue remains relatively small. We believe that in the future, sales of standardized products, particularly those based on mass platforms, should generate larger revenue and grow at a faster pace. We anticipate that growth will exceed 50% over the next three years, with more than half of that likely coming from cloud-based clients. I think it's being said, for instance, that something that Anthropic might charge $200 for ZAI, for instance, would be looking at 200 yuan. So it's obviously priced a lot less than what you see in the US. But how does that impact your margins? And also, how does that impact your path to profitability as a business? We believe that based on the overall trend, the price from mass will continue to fall gradually, because we think it should be an infrastructure for the entire society. At the same time, for AI, for example, the compute costs should also be gradually decreasing. We see this trend very clearly. For instance, in our current coding plan, the price of compute power for our coding API is about one-tenth of clouds, while our performance can reach 90%. This makes us more competitive and benefits more users. Do you think then that US companies like OpenAI or Anthropic, do you think that they actually need to look at the pricing strategy of companies in China? I believe that once the market matures through full competition, more people will understand the capabilities, performance, and pricing of these models. Reaching a state of equilibrium, it is possible for US companies to lower prices. But ultimately, I think that depends on their own decisions. I'm wondering also about the geopolitical angle, given that there's been a lot of discussion around H200 chips and the access of those in China. Would you be looking to acquire those? And which chips are you using as well from the domestic companies? We maintain an open attitude regarding the use of chips, as we focus more on cost-effectiveness. We hope that the chip performance will become even better, while the chip price will be lower, so as to reduce our overall costs.

The U.S. Senate advanced a resolution that would bar President Donald Trump from further military action against Venezuela without congressional authorization, a rare rebuke of the Republican leader.

Washington

Venezuela Strikes

U.S. Senate advances measure curbing Trump's Venezuela war powers

U.S. officials have discussed sending lump sum payments to Greenlanders as part of a bid to convince them to secede from Denmark and potentially join the United States, according to four sources familiar with the matter.

Trump administration mulls paying Greenlanders to join U.S.

Iran’s connectivity drops sharply nationwide – As authorities tighten controls amid growing protests over the economy. NetBlocks says the apparent blackout follows ‘a series of escalating digital censorship measures targeting protests’.

Tehran

Iran experiencing nationwide internet blackout as protests intensify

The Senate on Thursday voted to advance a resolution that could limit President Trump's ability to continue military action in Venezuela without congressional approval. It comes as the president told the New York Times that he could see the U.S. having direct oversight of Venezuela for years.

Caracas

Trump says U.S. could have direct oversight in Venezuela for years

The crew at the International Space Station will return home early because of what NASA is calling a medical concern with a crew member. CBS News space consultant Bill Harwood has more details.

Texas

ISS crew returning due to medical issue for first time in NASA history

President Trump plans to meet with Colombian President Gustavo Petro after Mr. Trump issued threats following the U.S. operation in Venezuela that led to the capture of Nicolás Maduro. CBS News' Lilia Luciano reports from Bogotá.

Trump to meet Colombia’s Petro after tensions over Venezuela operation

The United Kingdom aided the U.S. in an operation to seize a sanctioned oil tanker linked to Venezuela in the North Atlantic. CBS News' Ramy Inocencio reports.

UK helped the U.S. seize an oil tanker linked to Venezuela

U.S. forces on Wednesday seized two oil tankers, one in the North Atlantic and the other in the Caribbean, as part of the Trump administration's blockade of Venezuela's oil exports. Secretary of State Marco Rubio said the U.S. will take between 30 million and 50 million barrels of oil and sell it in the marketplace.

U.S. to control money from Venezuela oil sales after tanker seizures

Nick Reiner was set to be arraigned on murder charges on Wednesday in the killing of his parents Rob and Michele Reiner. But his defense attorney, Alan Jackson, told the judge he could no longer represent the 32-year-old. After the hearing, Jackson said he couldn't say why he withdrew for legal reasons, but added, "Nick Reiner is not guilty of murder."

Los Angeles

Nick Reiner's lawyer withdraws from case, says Reiner 'is not guilty'

NASA is considering a rare early return of its crew from the International Space Station over an unspecified medical issue involving one of the astronauts, after canceling a planned spacewalk that had been scheduled for Thursday (January 8), the agency said.

NASA mulls early ISS crew return due to astronaut medical issue

Washington says it has intercepted two Venezuela-linked oil tankers in the Atlantic as part of President Trump’s hardline effort to control oil movements across the Americas, claiming the vessels were part of a so-called shadow fleet used to ship sanctioned crude from Venezuela and Iran.

UK helped U.S. military to seize sentenced oil tanker on way to Russia

Minneapolis erupts in protests after a woman is shot by a federal agent – Video of the incident sparks outrage nationwide.

Minneapolis

ICE shoots woman: Incident sparks protests across the U.S.

President Masoud Pezeshkian has urged security forces to show restraint, distinguishing peaceful protesters from armed rioters. However, rights group Iran Human Rights says at least 27 protesters have been killed, while Iranian media report 15 deaths, including members of the security forces.

Iran police officer killed as cost-of-living protests enter 12th day

The decision comes as Trump approaches the first anniversary of his second term. Since returning to office, he has already moved to exit the World Health Organization, the Paris climate agreement, and UNESCO, while cutting funding to several UN bodies.

Trump orders U.S. withdrawal from 66 international organisations

Iran's army chief threatened pre-emptive military action on Wednesday over the "rhetoric" targeting the country, thought to be in reference to threats made by US President Donald Trump last week, warning that if Tehran "violently kills peaceful protesters," Washington would "come to their rescue."

Iran army chief threatens pre-emptive attack after Trump threats

U.S. forces have boarded a Venezuela-linked sanctioned oil tanker in the North Atlantic after pursuing it for weeks. The U.S. military also announced the seizure of a sanctioned tanker ship in the Caribbean Sea, the second vessel taken by American forces on Wednesday.

U.S. seizes two more sanctioned oil tankers with links to Venezuela

A woman was fatally shot by an ICE officer Wednesday morning in Minneapolis, the Department of Homeland Security says. CBS News' Nicole Sganga reports from the scene.

Protesters gather after ICE shoots and kills woman in Minneapolis

The U.S. seized a Russian-flagged oil tanker that was being shadowed by a Russian submarine on Wednesday (Jan. 7), after a more than two-week-long pursuit across the Atlantic as part of a U.S. "blockade" of Venezuelan oil exports.

U.S. seizes Venezuela-linked oil tanker after weeks-long pursuit

Nick Reiner, the son of Rob and Michele Reiner, is set to be arraigned in the killing of his parents, Rob Reiner and Michele Singer Reiner. It comes as details emerge about his time in custody and how his mental health history could play a role in his case.

Nick Reiner due in court on murder charges

Flights across France and Belgium and Eurostar train services have been severely disrupted by the winter weather.

Paris

Eurostar trains and hundreds of flights cancelled amid heavy snowfall

President Masoud Pezeshkian on Wednesday urged security forces to distinguish between what he called rioters and protesters, urging them not to target peaceful demonstrators.

Iran's President urges security forces not to target protesters

In Iran, protests that broke out on December 28th over the soaring cost of living look set to continue. Security forces fired tear gas at demonstrators in Tehran's Grand Bazaar on January 6: without giving numbers, Iran's IRNA news agency said 'some' people were arrested.

Death toll rises as Iran's security forces clash with protesters

Members of the North Atlantic Treaty Organization (NATO) are reacting to the Trump administration's comments on a potential Greenland takeover from Denmark.

Nuuk

European leaders blast Trump over Greenland takeover discussions

Donald Trump says Venezuela will hand over as much as 50 million barrels of oil and he will control the profits.

Trump says Venezuela will turn over 30-50 million barrels of oil

Britain and France have said they could send troops to Ukraine if a ceasefire is agreed. The pledge came at a Paris meeting of 30 nations, including the US, on security guarantees demanded by Kyiv before any peace deal.

London

Ukraine Invasion

UK, France ready to deploy troops in Ukraine after ceasefire

Colombian President Gustavo Petro said he would “take up arms” in the face of threats issued by US President Donald Trump.

Bogotá

Colombia vows to defend its sovereignty amid Trump’s military threats

Israeli forces storm Birzeit University in the occupied West Bank soon after students begin a sit-in in solidarity with jailed Palestinians.

Jerusalem

Middle East Conflict

Israeli school assault wounds dozens of Palestinians in West Bank raid

The White House says U.S. President Donald Trump and his team are considering a range of options in efforts to acquire Greenland as the ouster of Venezuelan leader Nicolás Maduro continues to reverberate in the Western Hemisphere.

Trump sees acquiring Greenland as a national security priority

The United States for the first time backed a broad coalition of Ukraine's allies in vowing to provide security guarantees that leaders said would include binding commitments to support the country if it is attacked by Russia again.

U.S. backs security guarantees for Ukraine at summit of Kyiv's allies

South African President Cyril Ramaphosa has expressed deep concern over recent U.S. military action in Venezuela, calling for the immediate release of Venezuelan President Nicolás Maduro and his wife.

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