Z.ai drops 10% after $5B fundraising announcement
Shares of Chinese AI firm Z.ai fell over 10% after it announced plans to raise about $5 billion—$2 billion through a Hong Kong share placement at a 10% discount to Friday’s close, and $3 billion from convertible bonds due in 2027. It’s Z.ai’s second big fundraising in two months, following a $4 billion raise in July. The company said the funds will back development of new AI models and infrastructure.
- Share price dropped over 10% on the announcement
- $2B to be raised via discounted share placement
- $3B raised from convertible bonds convertible at 12.5% premium
- Previous $4B placement was just two months ago
- Funds earmarked for research, computing, and AI product rollout
Sources covering this
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