Zhipu completes approximately $5 billion in funding for next-generation GLM R&D

TechFlow reports that on Sept. 13, according to Jinshi Data, Zhipu (02513.HK) announced the completion of approximately $5 billion in financing, comprising a $2 billion equity placement and a $3 billion convertible bond. The funds will be directed toward the R&D of the next-generation GLM models, its self-training framework, and computing infrastructure.

The equity placement price was set at HK$714, representing a discount of approximately 9.96% from the previous closing price and accounting for roughly 4.50% of the enlarged share capital. The convertible bonds carry a zero-coupon structure, issued at 100.5% of their principal amount. The initial conversion price is HK$892.50, representing a 25% premium over the placement price and approximately a 12.55% premium over the previous closing price.

This combination of zero interest and a pricing premium is viewed as a signal indicating strong long-term equity expectations. Upon receipt of the funds, Zhipu’s capital base for enhancing its computing infrastructure will be strengthened, bolstering its competitive edge in participating in the global race for frontier models.