--- title: "As KNOWLEDGE ATLAS's Valuation Approaches Xiaomi's, It Doubles That of JD.com" type: "News" locale: "en" url: "https://longbridge.com/en/news/287907880.md" description: "KNOWLEDGE ATLAS's market capitalization on the Hong Kong Stock Exchange reached HK$721.4 billion, approaching Xiaomi's HK$738 billion and far exceeding JD.com's HK$320 billion. Although KNOWLEDGE ATLAS is projected to generate only RMB 724 million in revenue and incur a loss of RMB 4.7 billion in 2025, the market assigns it a high valuation due to its Scarcity as the world's first publicly listed pure large-language-model company. Despite an 83% price hike for its API, call volume surged by 400%, indicating strong market demand for its products" datetime: "2026-05-28T11:14:15.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/287907880.md) - [en](https://longbridge.com/en/news/287907880.md) - [zh-HK](https://longbridge.com/zh-HK/news/287907880.md) --- # As KNOWLEDGE ATLAS's Valuation Approaches Xiaomi's, It Doubles That of JD.com On May 28, KNOWLEDGE ATLAS closed up 13% on the Hong Kong Stock Exchange, with its market capitalization standing at HK$721.4 billion. At this time, Xiaomi's market cap was HK$738 billion, and JD.com's was HK$320 billion. The two companies are expected to achieve revenues of RMB 457.3 billion and RMB 1.3 trillion, respectively, in 2025. In contrast, KNOWLEDGE ATLAS's 2025 revenue is only RMB 724 million, with a loss of RMB 4.7 billion. Traditional financial frameworks cannot explain these two sets of figures. iFlytek has an annual revenue of RMB 27.1 billion and a net profit of over RMB 800 million, yet its market capitalization is only RMB 118.7 billion, less than one-third of KNOWLEDGE ATLAS's. **Profitable companies trade at a discount, while loss-making ones command a premium.** Two valuation systems operate in parallel within the same exchange, each aware of the other's existence. The question is not whether KNOWLEDGE ATLAS is expensive, but rather what the underlying logic for this high valuation is, and under what conditions this logic might collapse. ## **The Market Is Not Pricing Revenue** The market is pricing in Scarcity—KNOWLEDGE ATLAS is the first pure large-language-model company to go public globally. For overseas institutions seeking exposure to Chinese AI infrastructure, it is currently the only available channel. This identity is referred to as the "Chinese Anthropic." Anthropic's valuation exceeded $1.2 trillion in May this year, with an Annual Recurring Revenue (ARR) of $44 billion, implying a pricing multiple of approximately 27 times ARR. Investing in Anthropic is buying an option on Claude becoming the next-generation "operating system," not betting on current income. KNOWLEDGE ATLAS plays a similar role in the Hong Kong stock market. As the world's first listed pure large-model company, it is the only direct "Chinese AI infrastructure" exposure available to overseas institutions. This Scarcity itself is part of the valuation. Working backward from Anthropic's 27x ARR multiple, the ARR required to support KNOWLEDGE ATLAS's current market cap of RMB 444.5 billion would be approximately RMB 16.4 billion. Its current ARR is RMB 1.7 billion, meaning it needs to grow roughly tenfold. Anthropic's ARR rose from $9 billion at the end of last year to $44 billion in just four months. The market is betting that China will see similar acceleration, with KNOWLEDGE ATLAS being the most likely candidate to succeed. ## **API Prices Up 83%, Volume Up 400%** In the first quarter of this year, KNOWLEDGE ATLAS raised its API pricing by 83%, yet call volume increased by 400%. When demand rises instead of falls after a price hike, it usually indicates that substitutes are inadequate or that customers are too deeply embedded to switch. The GLM model is deeply integrated by nine of China's top ten internet companies, with 12,000 enterprises connected. This level of integration is difficult to sever abruptly in the short term. The Claw Plan (an AI Agent product), launched in March, surpassed 400,000 subscriptions in 20 days, proving that consumer-grade Agent monetization is viable. MaaS ARR grew 60-fold year-on-year, and the proportion of cloud-based revenue rose from 15.5% to 26.3%, indicating the structural direction is correct. Of course, the MaaS ARR stands at RMB 1.7 billion, while the overall loss is RMB 4.7 billion; these figures cannot be ignored. In 2025, more than 50% of revenue still comes from localized deployment projects for government and enterprise clients. This segment is asset-heavy and has poor replicability. The market is betting that the cloud segment's 26% share will continue to grow to 60% or 70%, rather than expecting further expansion in the government and enterprise sector. ## **Xiaomi Sits at a Different Table** Xiaomi Corporation reported Q1 2026 revenue of RMB 99.1 billion, with net profit plunging 43%, primarily due to dual investments in AI R&D and its automotive business. Lei Jun announced a RMB 60 billion investment in AI over the next three years, and MiMo-V2.5-Pro ranked first globally among open-source models in evaluations by the same agency. The technological gap is smaller than imagined, but the divergence in market capitalization continues to widen. Xiaomi Corporation's market cap is approximately HK$738 billion, with KNOWLEDGE ATLAS closing in at 84% of that value. The two companies are becoming increasingly similar in their activities, but the capital market places them in different pricing frameworks. Xiaomi's AI makes phones more user-friendly and cars smarter, which follows the valuation logic of a consumer technology company, where the ceiling is determined by profit margins and competitors' price wars. KNOWLEDGE ATLAS's AI is sold directly, with API calls generating revenue itself; the framework is different. **The two companies are doing increasingly similar things, but the market applies vastly different pricing logics.** In the AI era, controlling the "underlying layer" versus integrating the "underlying layer" commands prices that are no longer in the same magnitude. JD.com has annual revenue of RMB 1.3 trillion and net profit of RMB 44.6 billion, with a P/E ratio of only 5-6 times. It has invested RMB 170 billion in JoyAI, implementing it in 2,000 AI scenarios, primarily to make supply chains more efficient and reduce operating costs. This is internal AI, not AI capabilities sold externally. The capital market prices "using AI to improve efficiency" differently from "selling AI capabilities." This reflects current market logic, not a judgment on the strategic value of JD.com's AI. iFlytek serves as a control sample: real revenue, real profits, and real AI applications, yet its market cap is less than one-quarter of KNOWLEDGE ATLAS's. In the current Hong Kong and A-share markets, "earning money from AI" and "possessing the AI narrative" belong to two completely different valuation systems. ## **The Most Vulnerable Aspect of This Bet** There are two real threats to KNOWLEDGE ATLAS's valuation logic, both with timelines falling in the second half of this year. The first is DeepSeek. V4-Flash is priced at RMB 0.02 per million tokens. In April, it completed a full migration from Nvidia CUDA to Huawei Ascend, becoming the first frontier model not reliant on Nvidia computing power. The V4 Pro is expected to see significant price cuts in the second half of the year. KNOWLEDGE ATLAS could raise prices because current substitutes were insufficient. Once DeepSeek drives prices to a lower floor, this premise will be eroded. More difficultly, as a listed company, KNOWLEDGE ATLAS cannot follow suit with price cuts—doing so would directly hurt revenue growth and gross margins, causing investors to flee first. Every price cut by DeepSeek presents a dilemma for KNOWLEDGE ATLAS. The second threat is the disappearance of the Scarcity premium. Moonshot AI is rushing toward an IPO, and StepFun has dismantled its red-chip structure and is preparing for a Hong Kong listing. When there are three or five pure large-model companies to choose from on the Hong Kong exchange, KNOWLEDGE ATLAS's "uniqueness" will cease to exist. The Scarcity premium is a gift from the HKEX window period and will disappear over time. ## **Who Moves First, Who Moves Last** For KNOWLEDGE ATLAS itself, the core focus is whether MaaS ARR can sustain growth. The H1 2026 financial report is a key node—if ARR grows from RMB 1.7 billion to over RMB 5 billion, the current valuation has support; if the growth rate slides significantly from the 60-fold increase, repricing will occur quickly. Maintaining GLM's technological lead is a prerequisite, and the subscription growth rate of the Claw Plan is an early signal. Whether Xiaomi Corporation's valuation logic can change depends on whether MiMo can transition from a technical demo to a paid product. As long as its main business remains hardware, the "AI infrastructure" pricing will not apply to it. This is a constraint of the business model, not a matter of effort. JD.com's pricing logic will only change if it one day transforms its AI capabilities into externally sellable services. JoyAI's current positioning is an internal efficiency tool. When this transition occurs is the most worthy variable to track regarding JD.com's valuation. ## **Key Events to Watch in the Second Half** The price reduction schedule for DeepSeek V4 Pro is the clearest trigger for external pressure. Once implemented, the API pricing space for the entire MaaS industry will be re-evaluated. KNOWLEDGE ATLAS's 2026 interim report: MaaS ARR growth rate and the proportion of cloud-based revenue are two key figures. The IPO processes of Moonshot AI and StepFun will directly affect the speed at which KNOWLEDGE ATLAS's Scarcity premium dissipates. There is also an underestimated variable: if rumors confirm that the National Integrated Circuit Industry Investment Fund (Big Fund) is entering DeepSeek, the positioning of large models at the national strategic level will equate to that of chips. This will have a direct impact on the competitive landscape of KNOWLEDGE ATLAS's government and enterprise market. These events are likely to concentrate in the second half of this year, representing the most intensive stress-test window since KNOWLEDGE ATLAS's listing. Whether a market capitalization of HK$600 billion is a reasonable pricing at this position or an overdrawal of too many years of future potential will only become clear then. Risk Disclosure and Disclaimer The market involves risks; investment requires caution. This article does not constitute personal investment advice, nor does it take into account the specific investment objectives, financial status, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article align with their specific circumstances. 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