Chinese artificial-intelligence model maker Zhipu is weighing a share sale to raise several billion US dollars in Hong Kong, according to sources familiar with the matter. The move comes after the company's stock has skyrocketed over 2,000% since its January initial public offering, propelling its market capitalization beyond $128 billion.
The dramatic rally reflects intense investor appetite for Chinese AI companies amid the global AI boom. Zhipu, one of China's leading AI model developers, has benefited from Beijing's push for technological self-sufficiency in advanced computing and growing demand for domestic AI solutions.
If finalized, the Hong Kong share sale would be one of the largest secondary listings by a Chinese tech firm in recent months. The company's market cap surge — from its IPO valuation to over $128 billion — highlights the explosive growth in China's AI sector, though the scale and timing of the offering remain under discussion.
The potential sale comes as Chinese regulators encourage tech companies to raise capital overseas while maintaining control over sensitive AI technologies. Any offering would require approval from both Chinese and Hong Kong authorities. An overhang risk exists: the company's stock has rallied so sharply that some analysts question whether fundamental business growth justifies the valuation.
The counter argument is that the massive stock surge may be driven by speculation rather than earnings, and a secondary offering could dilute existing shareholders. Some market observers caution that Chinese AI firms face regulatory risks and intense competition from global players.