KNOWLEDGE ATLAS's stock price plummeted 8.96% during intraday trading on Friday.

The sharp decline comes after the company, which operates the Zhipu AI business, unveiled plans to raise approximately HK$31.41 billion. The capital raising initiative, announced by the Hong Kong-listed tech firm, is part of a broader trend where companies are seeking funds for expansion and research in the artificial intelligence sector.

Such fundraising activities typically raise concerns about potential dilution for existing shareholders, which often exerts downward pressure on stock prices in the immediate term as the market digests the news.