JPMorgan Chase stated in its latest report: 1. Although Zhipu's total revenue in the first half of the year was below expectations, the main drag came from the downsizing of its on-premises deployment business; API revenue now accounts for 86.5%. 2. The API business is experiencing rapid growth: first-half revenue increased by 2736% year-over-year, with August ARR reaching $1.6 billion and a year-end target of $2.4 billion. 3. Growth is driven by both usage and pricing: Token usage has grown more than 40x this year, API average pricing has risen by approximately 101%, and usage by paying users and major clients has also increased rapidly. 4. AI inference efficiency has significantly improved: Unit Token costs have decreased by about 80% this year, service performance on equivalent domestic hardware has improved by approximately 3x, and API gross margin has risen to 24.6%. 5. The company is still in a phase of high R&D investment and high losses, but JPMorgan Chase expects positive operating cash flow by 2027 and adjusted profitability by 2028. JPMorgan Chase maintains an "Overweight" rating, raising the target price from HK$1,800 (set on August 16) to HK$2,000. Key areas to monitor include the sustainability of API growth, new scenarios beyond coding, overseas commercialization, and the capabilities and costs of the next-generation GLM. (The above views are from JPMorgan Chase's September 1 report.)