# Z.ai raises $5 billion, and the stock drops 10%

> A Chinese AI champion is back at the well two months after a $4 billion raise, and investors are not thrilled about the dilution.
- Title: Z.ai raises $5 billion, and the stock drops 10% · CNBC
- Summary: A Chinese AI champion is back at the well two months after a $4 billion raise, and investors are not thrilled about the dilution. Z.ai can raise money at…
- Keywords: z.ai, china tech, ai funding, stock market, convertible bonds, business, finance, raises, billion, stock, drops, CNBC
- Source: CNBC — https://cnbc.com/2026/09/14/zai-shares-tumble-second-major-raise-two-months-.html
- Author: Jenny Lee
- Published: 2026-09-14T03:03:58+00:00
- Read time: 1 min
- Topics: z.ai, china tech, ai funding, stock market, convertible bonds, business, finance
## The stock fell on good news
Z.ai shares dropped more than 10% on Monday after the Beijing company said it would raise about $5 billion. Rival MiniMax fell roughly 5% in sympathy.
## Two billion from new shares
Z.ai is issuing up to 21.97 million shares at HK$714 each, about HK$15.68 billion. That price is a 10% discount to Friday's close of HK$793.
## Three billion in bonds
A separate 20.14 billion yuan zero-coupon convertible bond comes due in 2027. It converts at HK$892.50, a 12.5% premium to Friday's close.
## Where the money goes
Z.ai says the proceeds fund its next generation of AI models: research, training and inference infrastructure, and turning the models into a business.

> research and development, training and inference infrastructure, and commercialization
## Nine billion in two months
July brought a share placement of roughly $4 billion. Adding this round, Z.ai has asked the market for about $9 billion since midsummer.
## The all-Chinese-chip bet
Last month the stock jumped when Z.ai launched a model it says runs entirely on domestic silicon, using 100,000 Chinese-made chips to serve live requests.
## Key takeaway

Z.ai can raise money at will, but each trip to the market is priced at a discount investors have to swallow.