Bilibili Inc. (NASDAQ: BILI) announced a proposed offering of $700 million in convertible senior notes due 2031, with proceeds earmarked for share repurchases and artificial intelligence initiatives.

Tencent (HKEX: 0700) will subscribe for $200 million of the notes as part of the transaction.

The Shanghai-based video streaming company also plans to repurchase up to $300 million of its shares, including $200 million worth from Tencent through its subsidiaries.

Bilibili said the remaining proceeds will go toward AI-related initiatives, including content recommendation, content creation, and user engagement, as well as general corporate purposes, according to an exchange filing.