Shares of Zhipu AI and GPU maker Iluvatar CoreX Semiconductor rallied sharply after both companies launched large secondary share placements, raising billions of Hong Kong dollars. The fundraises aim to boost R&D, expand hardware capabilities, and support growth amid rising demand for AI processing power in China.
- Zhipu AI raised HK$31.4 billion via accelerated bookbuild with 13% discount on shares.
- Iluvatar CoreX plans HK$7.1 billion share placement at 15% discount to bolster GPU development.
- Strong investor demand persists despite IPO lock-up expiries, aiding hefty capital raises.
What happened
Chinese AI model developer Zhipu AI and GPU maker Iluvatar CoreX Semiconductor both launched significant secondary share placements on Thursday, leading to sharp share price rallies. Zhipu AI offered 19.8 million primary shares at a 13% discount, raising HK$31.4 billion, while Iluvatar CoreX is aiming to raise HK$7.1 billion by selling 14.9 million shares at a 15% discount. These offerings occurred shortly after the expiration of lock-up periods from their recent IPOs, freeing up shares previously held by cornerstone investors.
The share price of Zhipu AI surged up to 9%, reaching HK$1,989 per share, while Iluvatar CoreX's stock gained about 7.8%, hitting HK$603.50. Investor interest remained robust despite concerns that earlier lock-up expirations might weigh on share demand. The capital raised will support research, hardware development, and commercial expansion to capitalize on rapidly growing domestic and global AI market opportunities.
Why it matters
These capital raises come at a critical time when China’s AI and semiconductor sectors are rapidly evolving and expanding. Zhipu AI, developer of the high-performing GLM-5.2 model, is exploring partnerships with domestic chip design firms to build custom AI processors tailored to increasing computational demand. Meanwhile, Iluvatar CoreX intends to use proceeds to strengthen its supply chain resilience and accelerate next-generation GPU development—all part of a broader strategic push to reduce reliance on foreign technology and lower operational costs.
The swift return to the equity markets following IPOs highlights a common strategy among newly listed Chinese tech companies seeking immediate funding for ambitious R&D and hardware projects. However, analysts warn that large upfront investments in AI chip development may take years to translate into financial gains, making these placements a high-stakes bet on future growth and innovation in a fiercely competitive sector.
What to watch next
Market participants should observe Zhipu AI’s progress in developing custom AI chips in cooperation with local semiconductor firms, which could be pivotal in addressing the soaring computational needs driven by expanding token usage and application scenarios. Additionally, monitoring Iluvatar CoreX’s execution of its plans to enhance GPU technology and supply chain robustness will shed light on its ability to stay competitive amidst global semiconductor supply challenges.
Investors will also want to track broader trends in China’s AI hardware market, such as order backlogs and shipment volumes reported by peers like MetaX, which recently saw its shares surge amid record shipments. These dynamics will provide insight into how effectively capital raised through secondary placements is fueling growth and innovation within China's rapidly evolving AI ecosystem.