Z.ai revenue to hit HK$3.2B in 2026, with cloud overtaking on-premise

China’s Knowledge Atlas Technology Joint Stock Company Ltd. (HKG: 2513), branded as Z.ai, is poised for a sharp acceleration in growth, according to Visible Alpha consensus estimates.

The group, which develops large language models (LLMs) and related AI systems, generates revenue from two core segments: on-premise deployments (bespoke systems installed within clients’ own data centers) and cloud-based offerings, where customers access models via subscription or usage-based pricing.

The company went public in Hong Kong in January 2026, and is rapidly expanding its cloud-based services while maintaining a strong foothold in on-premises enterprise deployments.

Analysts expect the company’s cloud business to become the primary engine of expansion. Revenue from cloud deployments is projected to surge to HK$2 billion ($258 million) in 2026, up from HK$190 million ($24 million) last year, marking a step-change as enterprises shift towards more scalable, lower upfront-cost AI solutions. The segment is forecast to account for roughly 63% of total revenue in 2026, overtaking the historically dominant on-premise business, while gross profit is expected to rise sharply to about HK$484 million ($62 million), from HK$36 million ($5 million) in 2025.

While cloud adoption accelerates, the legacy deployment segment is still expected to post solid gains, with revenue rising to HK$1.2 billion ($151 million) in 2026 from HK$534 million ($69 million) in 2025. Segment gross profit is projected to rise to HK$671 million ($86 million), up from HK$261 million ($33 million) last year.

Overall, Z.ai’s revenue is projected to reach HK$3.2 billion ($409 million) in 2026. Beyond that, analysts anticipate an aggressive expansion trajectory, with revenue forecast to climb to HK$46.8 billion ($5.9 billion) by 2030.

Z.ai is one of China's emerging AI startups, often called an "AI tiger," competing with companies like OpenAI LLC and Anthropic PBC.

This article was published by Visible Alpha, part of S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.