Zhipu Raises $5B via Zero-Coupon Convertible to Fund AI Compute

Zhipu's zero-coupon convertible is a striking funding structure for an AI model developer, letting it defer cash interest while banking on future equity appreciation to reward bondholders. That it succeeded despite rising Fed rate-hike odds — now nearly 90% for this week after hotter-than-expected core CPI — suggests compute-focused AI stories can still clear the bar in a tightening backdrop. The open question is whether this template holds if rates keep climbing and AI valuations compress.