Zhipu AI (Z.ai)

AI Foundation Models · China Tech · Enterprise Software

Funding

Zhipu raises $5B via Hong Kong share sale and convertible bonds

Investors accepted a guaranteed loss on the bonds, betting entirely on future stock gains as China's AI spending race accelerates.

• Z.ai (Zhipu) raised about $5 billion on Sept. 13, 2026, combining a $2 billion Hong Kong share placement at HK$714 (a 10% discount) with a $3 billion zero-coupon convertible bond sale due September 2027.
• Z.ai, formerly Zhipu AI, is a Beijing-based large language model developer behind the GLM model family, competing with rivals DeepSeek, Moonshot and MiniMax.
• The convertible bonds carry a yield between -0.5% and 0%, meaning buyers accept a small certain loss on the debt for the option to convert at HK$892.50, a 25% premium over the placement price.
• Revenue jumped 400% year-over-year to RMB 953.89 million in the first half of 2026, with annualized recurring revenue near $1.6 billion, even as its strongest models remain free and open-weight.
• This is Zhipu's third equity or debt raise since its January 2026 Hong Kong IPO, following a $4 billion placement in July, pushing cumulative fundraising past $10 billion within eight months.
• The raise priced just two days after the NSA, FBI and CISA issued a security advisory naming the company, yet demand held enough for shares to price against Friday's closing level.
• The repeated mega-raises show how capital-intensive China's AI race has become, as firms burn cash on compute and talent while giving away their core models for free.