Z.AI shares surged 5.15% in Friday's intraday trading, extending previous session gains, as the AI large-model provider benefited from a ripple effect after DeepSeek announced a significant increase in API service pricing.
The market interpreted DeepSeek's move as a landmark signal of strengthening pricing power across the AI large-model API industry. Analysts expect that price-sensitive customers may shift toward alternative providers such as Z.AI, boosting its market share. Consequently, institutions raised Z.AI's revenue forecast for this year by 35%.
Z.AI's business fundamentals remain supported by its high-switching-cost government and enterprise client base. Privatized deployment revenue accounts for 73.7% of total revenue, underpinned by domestic certification barriers, which adds resilience to its growth outlook amid industry pricing shifts.
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