Z.AI Raises $5 Billion for AI Development in Hong Kong

Z.AI, a Chinese artificial intelligence company, has raised approximately $5 billion through a combination of a share placement and zero-coupon convertible bonds, according to a filing with the Hong Kong stock exchange. The fundraising, announced on Sunday, September 13, 2026, is intended to fund the development of next-generation AI models and computing infrastructure. The company placed up to 21.965 million new H shares at HK$714 each, a discount to the previous closing price, raising net proceeds of about HK$15.664 billion. Concurrently, it issued RMB 20.14 billion in zero-coupon convertible bonds, equivalent to gross proceeds of approximately US$3.016 billion. The bonds mature in September 2027 and have an initial conversion price of HK$892.50. Z.AI plans to allocate 60% of the net proceeds to research and development for its next-generation GLM models, training, inference capacity, and computing resources. Another 15% is earmarked for expansion, investments, and potential acquisitions, with the remaining 25% for working capital and general corporate purposes.