Chinese artificial-intelligence model maker Zhipu (trading as Knowledge Atlas Technology) is reportedly considering a share sale in Hong Kong to raise several billion US dollars. This move comes after its shares soared approximately 2,000% since its initial public offering in January, pushing its market capitalization above HK$1 trillion (approximately $128 billion). The company's initial Hong Kong IPO raised $558 million, with shares priced at HK$116.2. They have since climbed significantly, touching HK$2,980. The potential placement could occur as soon as next month, coinciding with the expiration of a six-month lock-up period from its IPO on July 8.
Bloomberg Intelligence analysts Robert Lea and Jasmine Lyu have expressed concerns about Zhipu's profitability and competitiveness, especially when compared to rivals like US-based Anthropic, the developer of Claude. They noted that Zhipu is likely to remain deeply unprofitable, with rising agentic AI demand potentially increasing its losses over the next 24 months. These analysts suggested that a multibillion-dollar placement might serve more as a "refueling stop" for funding a cash-hungry business rather than a "victory lap."
Despite these concerns, Zhipu recently launched its GLM-5.2 AI model, which has been made free and open-source to attract developers and embed its tools globally. This strategy, along with sentiment boosted by official measures promoting AI adoption in China, has contributed to the strong performance of Chinese tech and AI-related stocks. The company also aims to issue shares in Shanghai as part of a dual-market capital strategy to secure additional funding for model development. The potential share sale mirrors Contemporary Amperex Technology Co Limited's (CATL) $5 billion placement in April, which followed a similar sale in May 2025. CATL's market value is more than double Zhipu's, though CATL sells a profitable physical product.
