Z.ai completed a roughly $5 billion fundraising through a Hong Kong share placement and zero-coupon convertible bonds, adding capital for AI research, computing infrastructure and expansion. The company sold 21.97 million new shares at HK$714 each, about 10% below its prior close, and issued CNY20.14 billion of convertible bonds due in September 2027. Shares fell nearly 7% on Monday to HK$739, their lowest since March 31, as investors weighed immediate equity dilution and potential future conversion of the bonds. The financing follows a roughly $4 billion follow-on share sale in July and reflects the heavy funding demands facing Chinese AI developers.