Z.AI, formerly known as Zhipu AI, saw its shares slide to 1,168.00 Hong Kong dollars—roughly US$148.98—amidst a wider 4.1% retreat in the Hang Seng Tech Index. The sell-off extended to competitor MiniMax, which shed 18% of its market value as analysts highlighted the volatile nature of the sector. The arrival of Kimi K3 has effectively raised the performance bar, pushing Z.AI and its peers into a defensive position regarding their technological lead.
In section Market Quotes
Z.AI Shares Plunge 24% as Rival Moonshot AI Debuts Kimi K3
A 24% single-day share drop for Z.AI has sent shockwaves through the Hong Kong market, triggered by the surprise launch of Moonshot AI’s Kimi K3. The new model’s reported benchmark superiority over Z.AI’s GLM 5.2 has shattered investor confidence, forcing a sharp revaluation of China’s leading independent AI labs.
Morningstar analyst Chelsey Tam noted that the rapid cycle of model releases creates constant pressure, as firms struggle to maintain their dominance against frequent leapfrogging. While Chinese AI labs are closing the gap with U.S. counterparts like OpenAI and Anthropic, their financial returns have yet to match their lofty market valuations. DBS analysts remain cautious, suggesting that Z.AI’s premium pricing was built on the assumption of being the top domestic player, a status now challenged by the benchmark performance of the K3 system.
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