Information about Zhipu’s AI service on the web, called Z.ai, located on a computer in Shanghai on January 7, 2026.
Raul Ariano | Bloomberg | Getty Images
Stocks in Chinese artificial intelligence companies Zai Shares fell more than 10% on Monday after the company announced plans to raise about $5 billion through the issuance of new stock and the sale of convertible bonds, its second major fundraising in two months.
The Beijing-based company plans to issue up to 21.97 million new shares at HK$714 per share, raising total proceeds of about HK$15.68 billion ($2 billion). The listed price is a 10% discount from Z.ai’s Friday closing price of HK$793.
Separately, Z.ai plans to issue 20.14 billion yuan ($3 billion) of zero-coupon convertible bonds due in 2027. The bonds will initially be convertible at HK$892.50 per share, a 12.5% premium to Friday’s closing price.
The company said proceeds from this funding will support the development of next-generation AI models, including research and development, training and inference infrastructure, and commercialization.
The latest funding comes just two months after Z.ai raised nearly $4 billion through a stock issue in July.
Last month, Z.ai stock soared after the company unveiled a new AI model that it says runs entirely on Chinese-made chips. The company claimed that it used 100,000 domestically produced chips to process online requests for this model.
Stock prices of domestic competitors mini max It also fell, dropping about 5% on Monday.
— CNBC’s Evelyn Cheng contributed to this report
