Zhihu establishes a subsidiary with 1.5 billions yuan for AI development, moving from product to business carrier

Public information on September 2 shows that Zhihu founder Zhou Yuan established Beijing Zhizhe Tansuo Technology Co., Ltd., with a registered capital of 1.5 billion yuan, wholly owned by Zhihu's domestic operating entity.

Article Author, Source: Wallstreetcn

Public business registration information on September 2 shows that Beijing Zhizhe Tansuo Technology Co., Ltd. (“Zhizhe Tansuo”) was recently established, with a registered capital of 1.5 billion yuan. Zhou Yuan, founder of Zhihu, serves as the legal representative. Its business scope includes big data services, Internet data services, basic AI software development, and AI application software development.

Public information indicates that Zhizhe Tansuo is wholly owned by Beijing Zhizhe Tianxia Technology Co., Ltd., with Zhou Yuan serving as director and Tang Liu as the financial officer. So far, Zhihu has not yet released information about the new company’s positioning, personnel structure, or specific business plan.

Beijing Zhizhe Tianxia is Zhihu’s core domestic operating entity. According to Zhihu’s 2025 annual report, this company is responsible for running the Zhihu website and App, and is included in the consolidated scope of the listed company through contractual arrangements. Therefore, Zhizhe Tansuo is a newly established company within Zhihu's domestic operating system, not an external investment.

However, the 1.5 billion yuan is only registered capital and cannot be directly equated with cash already invested in the AI business. Under the current Company Law, the registered capital of a limited liability company is the shareholders’ subscribed contribution amount, which should, in principle, be paid in full within five years from establishment; such contributions can also be made using intellectual property, equity, or other non-cash assets. As of now, there is still no public information about Zhizhe Tansuo’s paid-in capital, manner of contribution, or progress of contribution.

The establishment of the new company comes as Zhihu accelerates the validation of its AI business model.

In June 2024, Zhihu launched an AI search product called “Zhihu Direct Answers,” and has since gradually expanded AI applications into search, content distribution, and community operations. By 2026, the company's AI strategy extended further to branded content assets, expert data solutions, and developer tools.

At the Q2 earnings meeting held in August, Zhihu management stated that its open data platform had attracted over 17,600 professional developers, with more than 2,600 projects included in AI Works; the number of clients for its AI content asset business grew by 50% quarter-over-quarter. However, management also said that the business had not yet generated stable, large-scale revenue and that the new AI business remains in the commercial validation phase.

From a financial perspective, Zhihu still has some room to support phased investment in its AI business. In Q2, the company achieved revenue of 690 million yuan, up 5.9% quarter-on-quarter, but down 3.7% year-on-year; for the first half of the year, adjusted net profit was 6.906 million yuan.

As of the end of June, the company held a total of 4.424 billion yuan in cash, term deposits, restricted funds, and short-term investments. R&D expenses in the same period were 109 million yuan, reflecting the company’s continued focus on investment efficiency alongside new business expansion.

From its business scope, Zhizhe Tansuo can provide Zhihu with an independent legal entity for data services and AI applications, but current available information cannot prove that Zhihu will transfer its large language model development, Zhihu Direct Answers, or expert data business entirely into the new company.

The actual significance of the new entity will still depend on how the registered capital is paid in, whether the core team and assets are transferred, and when the AI business generates separately identifiable revenue.