Chinese AI company Z.AI (formerly Zhipu AI) has raised a massive $5 billion through a mix of new shares and convertible bonds. The fundraising comes as the company’s stock price continues to slide.

Deal Breakdown

Z.AI brought in about $2 billion by selling 21.97 million shares on the Hong Kong Stock Exchange. Another $3 billion came from issuing convertible bonds, which mature in September 2027.

How the Funds Will Be Used

Roughly 60% of the net proceeds are earmarked for developing next-gen models and building a fully self-learning AI system. Another 15% is set aside for scaling up the business.

Market Reaction

Since peaking at around $150 in July, Z.AI shares have dropped to about $95 at the open on September 14. During the session, the stock lost another 9%.