Information on Zhipu’s AI service on the web, dubbed Z.ai, arranged on a computer in Shanghai, Jan. 7, 2026.<\/p>\n
Raul Ariano | Bloomberg | Getty Images<\/p>\n
Shares of Chinese artificial intelligence company Z.ai<\/a> tumbled more than 10% on Monday after the company announced<\/a> plans to raise about $5 billion through a new share placement and convertible bond sale, marking its second major fundraising in two months.<\/p>\n The Beijing-based company plans to issue up to 21.97 million new shares at HK$714 each, raising gross proceeds of about HK$15.68 billion ($2 billion). The placement price represents a 10% discount to Z.ai’s Friday closing price of HK$793.<\/p>\n Separately, Z.ai plans to issue 20.14 billion yuan ($3 billion) in 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.<\/p>\n The company said proceeds from the fundraising will support the development of its next-generation AI models, including research and development, training and inference infrastructure, and commercialization. <\/p>\n The latest fundraising comes just two months after Z.ai raised about $4 billion<\/a> through a share placement in July.<\/p>\n Last month, Z.ai shares jumped<\/a> after the company launched a new AI model that it said runs entirely on Chinese-made chips. The company claimed it used 100,000 domestically made chips to handle online requests for the model.<\/p>\n Shares of its domestic rival MiniMax<\/a> were also down, falling about 5% on Monday.\u00a0<\/p>\n \u2014 CNBC’s Evelyn Cheng contributed to this report<\/p>\n