Why Are Zhipu AI Shares Rising Sharply Today?

Introduction: The Thursday When the Chinese AI Giant Shook the Market

Thursday, Hong Kong Stock Exchange. Shares of Zhipu AI, traded under the name Knowledge Atlas Tech Joint Stock, surged 14.7% to HK$2,094, attracting the attention of investors around the world. This was not just a random spike — it was the result of a large-scale secondary share placement that raised about $4 billion. The company placed 19.78 million shares at a price of HK$1,588 per share, representing a discount of around 13% to the previous closing price.

What is behind this growth? The placement took place after the key lock-up period expired on July 8, 2025, an event that many market participants feared could trigger massive selling. However, a group of major cornerstone investors — including state-backed entities and government-linked industrial funds that control around 70% of the unlocked cornerstone shares — publicly confirmed their long-term commitment to holding the stock, effectively neutralizing the expected pressure on the share price.

Another growth catalyst came from reports earlier this week that Zhipu is considering developing its own ASIC chips to support the GLM model family. This highlights the company’s intention to reduce its dependence on third-party AI hardware manufacturers.

The broader Hong Kong technology market also provided a favorable backdrop: the Hang Seng Tech Index rose sharply this week amid numerous AI-related announcements from major Chinese internet companies and capital inflows into software stocks and companies developing large language models.

Zhipu is one of the hottest stocks on the Hong Kong market: since its debut in January, the stock has gained almost 1,300%, as investors remain broadly optimistic about the company’s prospects in the artificial intelligence industry.

Let’s take a closer look at why Zhipu AI has become the focus of investor attention, what factors are supporting the growth of its shares, and whether the company has the potential to strengthen its position further.

Zhipu AI: What Kind of Company Is It?

A Chinese Leader in Large Language Models

Zhipu AI is a Chinese company specializing in the development of large language models (LLMs). It is one of the leading players in this field in China, competing with giants such as Baidu, Alibaba, and Tencent.

The company was founded in 2019 and has been actively developing its technologies ever since. Its flagship product is the GLM family of models, which are used for various tasks, from natural language processing to content generation.

Market Position

Zhipu AI holds a strong position in the Chinese AI market. Its models are widely used in the corporate sector as well as by government institutions. The company is considered one of the key players in China’s emerging AI ecosystem.

Why Zhipu AI Shares Are Rising

Successful Secondary Share Placement

The company completed a large-scale secondary share placement that raised about $4 billion. Zhipu raised approximately HK$31.4 billion by placing 19.78 million shares at HK$1,588 per share.

The funds raised are intended to strengthen the company’s capital base and finance further research and development of foundational large language models. This marks an important step in the company’s growth strategy after its IPO.

Expiration of the Lock-Up Period

The placement took place after the key lock-up period expired on July 8, 2025, an event that many market participants feared could become a trigger for massive selling.

However, a group of major cornerstone investors — including state-backed entities and government-linked industrial funds that control around 70% of the unlocked cornerstone shares — publicly confirmed their long-term commitment to holding the stock, effectively neutralizing the expected pressure on the share price.

Development of Proprietary ASIC Chips

Another growth catalyst came from reports earlier this week that Zhipu is considering developing its own ASIC chips to support the GLM model family.

This highlights the company’s intention to reduce its dependence on third-party AI hardware manufacturers. If Zhipu succeeds in developing its own chips, it could gain a significant competitive advantage.

Favorable Backdrop in Hong Kong’s AI Market

Hang Seng Tech Index Rally

The broader Hong Kong technology market provided a favorable backdrop. The Hang Seng Tech Index rose sharply this week amid numerous AI-related announcements from major Chinese internet companies and capital inflows into software stocks and companies developing large language models.

This created a positive environment for all AI-sector stocks, including Zhipu AI.

Growing Interest in AI Companies

Investors are showing strong interest in companies developing large language models. Zhipu AI is considered one of the leaders in this field, which attracts additional attention.

Zhipu AI Share Growth Since the IPO

Almost 1,300% Growth

Zhipu is one of the hottest stocks on the Hong Kong market. Since its debut in January, the stock has gained almost 1,300%.

This reflects investors’ positive assessment of the company’s prospects in the artificial intelligence industry.

Investor Confidence

Investors believe in the potential of Zhipu AI. The company is demonstrating steady growth and has strong market positions.

What Awaits Zhipu AI in the Future

Development of GLM Models

The funds raised through the placement will be directed toward further research and development of foundational large language models. This will allow Zhipu to improve its models and maintain its leading position in the market.

Development of Proprietary Chips

If Zhipu manages to develop its own ASIC chips, this will reduce its dependence on third-party manufacturers and provide a competitive advantage.

Expansion of the Client Base

Zhipu will continue expanding its client base by attracting new corporate clients and government institutions.

Risks and Challenges

Competition

Zhipu faces intense competition from Baidu, Alibaba, Tencent, and other Chinese companies developing large language models.

Regulatory Risks

The Chinese government actively regulates the AI industry. New laws could restrict Zhipu’s activities.

Technological Risks

The development of large language models requires significant investment in research and development. If Zhipu fails to maintain its pace of innovation, it could lose its competitive advantages.

Conclusion: Zhipu AI — A Rising Star of Chinese AI

Zhipu AI shares rose 14.7% to HK$2,094 after a large-scale secondary share placement that raised about $4 billion. The company placed 19.78 million shares at HK$1,588 per share.

The placement took place after the lock-up period expired, but cornerstone investors confirmed their long-term commitment, neutralizing the expected pressure.

Reports about the development of proprietary ASIC chips added further optimism. The broader Hong Kong technology market provided a favorable backdrop.

Zhipu is one of the hottest stocks on the Hong Kong market, having gained almost 1,300% since its IPO.

Zhipu AI is on track to strengthen its position in China’s large language model market. The successful share placement and plans to develop proprietary chips create a foundation for further growth. Investors who believe in the company’s potential may see significant returns in the coming years.