(Reuters) -OpenAI said on Wednesday its analysts have seen notable progress by Chinese start-up Zhipu AI in securing government contracts across several regions, signaling China's growing momentum in pursuing global AI leadership.

Zhipu AI, which is backed by the Chinese Communist Party, aims to "lock Chinese systems and standards into emerging markets before U.S. or European rivals can, while showcasing a 'responsible, transparent and audit-ready' Chinese AI alternative," the ChatGPT maker said in its post.

The company provides AI solutions - including sovereign large language model infrastructure and private hardware in partnership with Huawei - to governments and state-owned enterprises in Malaysia, Singapore, the UAE, Saudi Arabia and Kenya.

The initiative forms part of China's broader effort to build a self-sufficient, globally competitive AI ecosystem that rivals the United States while reducing reliance on American technology.

Zhipu AI, which did not immediately respond to a request for comment, is supported by more than $1.4 billion in state investment and maintains strong ties with the Chinese government and state-owned entities, according to OpenAI.

In January, the company was added to the U.S. Commerce Department's export control entity list, barring it from procuring U.S. components.

Zhipu AI has been positioning itself among China's leading AI firms alongside DeepSeek, Moonshot AI, and Minimax, as well as tech giants ByteDance and Alibaba.

OpenAI has also built partnerships and attracted investment across the Middle East and Asia. Its "OpenAI for Countries" initiative helps interested governments develop "sovereign AI capability" in coordination with the U.S. government.

The report comes as the U.S. and China engage in intense competition in the rapidly evolving AI landscape, with both nations vying for technological dominance.