Z. AI raises $5 billion through share and bond sales

Beijing-based artificial intelligence developer Z. AI (formerly Zhipu AI) has raised approximately $5 billion through a combination of share placements and convertible bond sales. According to a filing with the Hong Kong stock exchange, the company raised about $2 billion via a placement of 21.97 million new Hong Kong shares at HK$714 each, representing a 10% discount to its previous closing price.

Additionally, the company raised 20.14 billion yuan (approximately $3 billion) through the sale of zero-coupon convertible bonds due in September 2027. The bonds were issued at 100.5% of their face value, with an initial conversion price of HK$892.50.

Z. AI plans to allocate roughly 60% of the net proceeds toward research and development for its next-generation models and its fully self-training system. Another 15% is earmarked for expansion plans, while the remaining funds will be used for capital structure optimization, working capital, and general corporate purposes. This capital injection follows a $4 billion follow-on share sale in July and comes as Chinese AI firms face high costs for computing infrastructure and talent required to compete globally.