Shares of Z.ai, also known as Zhipu, jumped 37% in Hong Kong trading on Tuesday, closing at HK$1,219 (US$155).
The sharp repricing followed reports that the artificial intelligence company has completed a 1-gigawatt data centre powered exclusively by domestic Chinese chips.
The market reaction underscores investor appetite for tangible progress in China’s efforts to build an AI infrastructure independent of US technology restrictions.
By deploying a facility of this scale using only local hardware, Z.ai demonstrates that domestic semiconductor supply chains can support large-scale AI workloads, a critical milestone for the sector.
This development comes as global tech firms face increasing pressure to navigate fragmented supply chains.
For Z.ai, the completion of the data centre validates its strategy to rely on homegrown components, potentially reducing exposure to export controls and geopolitical risks that have hampered other players in the industry.