Shares of Chinese artificial intelligence company Z.ai, also known as Zhipu, surged 37% on Tuesday in Hong Kong, closing at HK$1,219 ($155). The sharp rise came after the firm announced it had completed a giant data centre powered entirely by Chinese-made chips. The facility, a 1-gigawatt AI computing centre, is designed to train and deploy the company’s GLM models. The stock rebound followed a week-long decline of more than 40%, as investors reacted to news of the data centre’s completion. Zhipu is one of China’s leading AI companies and has positioned itself as a key player in the country’s push for technological self-reliance. Using only domestic chips aligns with Beijing’s goal to reduce dependence on foreign technology, especially amid US export restrictions. The data centre is among the largest of its kind in China and highlights the rapid growth in AI infrastructure. Analysts say the facility could help Zhipu accelerate its AI development and compete with global rivals. The company has not disclosed the cost of the project or the specific chip suppliers. Tuesday’s share price gain wiped out some of the previous losses, though the stock remains volatile. Investors are watching for further updates on Zhipu’s strategic plans. The tech sector in Hong Kong has seen mixed performance recently, with AI stocks particularly sensitive to news about domestic chip capabilities.