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Zhihu, a question-and-answer platform in China, is betting on artificial intelligence (AI) search features to transform itself into the country’s equivalent of X and LinkedIn, as the company achieved quarterly profitability for the first time since going public, according to chief financial officer Wang Han. The company not only leveraged its extensive network of professionals, executives and scholars to answer questions, but also used AI models such as DeepSeek-R1 and Zhihu’s proprietary algorithms to power its Zhida service, Wang said in an interview with the South China Morning Post on Tuesday. Often likened to Quora, Zhihu provides a platform for users to discuss myriad topics, from lifestyle to literature.
With the company’s increasing focus on AI, Wang envisions that the platform will evolve to resemble X, which is inaccessible in mainland China, and LinkedIn, which ceased operations in the country in 2023. With over 81 million monthly active users, Zhihu also resembled US social media platform Reddit, which is also unavailable in mainland China, due to their roles in facilitating public discussions, he said. The name “Zhida”, meaning “direct answer” in Mandarin, harnesses the platform’s vast content archive to automatically search for and generate responses to user inquiries.
It synthesises previous answers from verified experts and incorporates links from other websites. Since its launch in June, the AI service has amassed over 10 million monthly active users, according to the company. Wang is hopeful that the Zhida feature, a cornerstone of the company’s AI strategy, will position Zhihu as the primary platform for sharing professional knowledge and conducting public discussions in China.
Zhihu’s foray into AI comes as domestic online platforms – such as TikTok’s Chinese counterpart Douyin, Tencent Holdings’ WeChat and Alibaba Group Holding’s new AI assistant Quark – are also exploring AI-driven search capabilities. Alibaba owns the Post. Wang highlighted Zhihu’s distinct advantage: its network of experts.
“In the era of AI, the influence of high-quality content will only grow,” he said, adding that users could further engage with experts by visiting their profiles for one-on-one inquiries. Zhihu’s AI investment coincides with the platform’s first quarterly profit since its listing on the New York Stock Exchange in 2021. The company recorded a net income of 86.
4mil yuan (US$11.8mil) in the last quarter of 2024, recovering from a loss of 103.1mil yuan a year earlier.
Zhihu shares have lost over 90% of their market value since the company went public. For Wang, the milestone offers relief after months of pressure to achieve profitability since joining the Beijing-based company in February last year. “It is a testament to our strategic focus and successful execution,” he said during an earnings call last month.
Wang said Zhihu was shifting its focus to its core demographic of well-educated users while moving away from the blind pursuit of monthly active users. The adjustment has helped the company slash its community-related customer acquisition costs by over 80%, according to Wang. The company’s operating expenses dropped nearly 40% in the fourth quarter, while gross profit margin rose 3.
8 percentage points year on year to 62.9%. Wang compared Zhihu to prestigious Chinese institutions like Tsinghua University and Peking University: “You wouldn’t compare these universities to Disney .
.. Only entertainment platforms chase high daily active user numbers,” he said.
“Tsinghua and Peking University have established strong brands in academia despite having limited student numbers. This allows them to monetise their influence.” – South China Morning Post.
