Chinese AI Chip Startups Moore Threads and MetaX File for $1.7 Billion IPOs Amid US Export Curbs

Two Chinese chip firms plan $1.7 billion IPOs, bet US export curbs to spur growth

BEIJING, July 1 (Reuters) - Two Chinese artificial intelligence chip startups are seeking to raise a combined 12 billion yuan ($1.65 billion) in initial public offerings, hoping U.S. curbs on advanced chip sales to China will boost local demand for their products, their filings show. Beijing-based Moore Threads plans to raise 8 billion yuan, while Shanghai-based MetaX seeks 3.9 billion yuan, according to their IPO prospectuses filed on Monday. Both companies intend to list on Shanghai's STAR Market, the tech-focused board of the Shanghai Stock Exchange. Their fundraising plans underscore growing efforts by Chinese chipmakers to capitalise on Beijing's push to develop domestic champions in graphics processing units (GPU), which are crucial for AI development. Reuters reported last week that Biren Technology, another Chinese AI chipmaker, raised about 1.5 billion yuan in fresh funding and was preparing for a Hong Kong IPO. Developing domestic chip champions has become increasingly urgent for Beijing, as the U.S. tightens export restrictions, with the latest rules implemented in April banning Nvidia's H20 chips, one of its most popular chips, from being shipped to China. The U.S. has also imposed restrictions since last year that prevent Chinese AI chip designers from accessing advanced global foundries like Taiwan Semiconductor Manufacturing (2330.TW), opens new tab for producing cutting-edge semiconductors. Moore Threads and MetaX both cited U.S. sanctions as a major risk to their development but also emphasised the restrictions could create significant market opportunities. "U.S. restrictions on high-end GPU exports to China are prompting Chinese companies to accelerate domestic substitution processes," Moore Threads said. The company was added to the U.S. Entity List in late 2023 and is barred from partnering with TSMC. MetaX said "geopolitical pressures are forcing relevant domestic clients to use domestically-produced GPU products, which will help domestic GPU manufacturers establish closer ties with local customers and suppliers." The two firms design GPUs to compete with Nvidia products and have reported steep losses over the last three years, which they largely attributed to heavy research and development spending. Moore Threads generated revenue of 438 million yuan in 2024 but posted a loss of 1.49 billion yuan, adding to losses of 1.67 billion yuan in 2023 and 1.84 billion yuan in 2022. MetaX posted 2024 revenue of 743 million yuan against a 1.4 billion yuan loss, following losses of 871 million yuan in 2023 and 777 million yuan in 2022. "Moore Threads and MetaX are both considered leading GPU firms in China, and accessing the capital market in China would be crucial for them to continue their research and development," said He Hui, research director on semiconductors at Omdia. China's drive to achieve higher self-sufficiency in chips would help domestic GPU firms achieve economies of scale, crucial to generating higher revenue and profits, He said. Both companies were founded in 2020 by executives who previously worked at major U.S. chip firms. MetaX was founded by former AMD (AMD.O), opens new tab employees, including Chairman Chen Weiliang, who previously served as the U.S. chipmaker's global head of GPU product line design. Moore Threads was established by former Nvidia employees, including Chairman Zhang Jianzhong, who previously held the role of general manager for the AI chip giant's China operations. The two firms compete with a growing roster of domestic rivals including Huawei(HWT.UL), Cambricon (688256.SS), opens new tab, Hygon (688041.SS), opens new tab and other startups. Reporting by Liam Mo, Che Pan and Brenda Goh; Editing by Miyoung Kim and Sonali Paul Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Artificial Intelligence

Chinese GPU startups Moore Threads and MetaX file for IPOs, seeking a combined $1.65B in funding - SiliconANGLE

Chinese GPU startups Moore Threads and MetaX file for IPOs, seeking a combined $1.65B in funding China's domestic chipmaking industry is gaining momentum as U.S. sanctions on the export of advanced chips to that country accelerate local demand, prompting two of its major players to file for initial public offerings on the Shanghai Stock Exchange's technology-focused STAR index. A report in Reuters says Beijing-based Moore Threads Technology Co. Ltd. and Shanghai-headqaurtered MetaX Integrated Circuits Co. Ltd. are seeking to raise a combined 12 billion yuan ($1.65 billion) through their IPOs, according to prospectuses filed Monday. Moore Threads hopes to generate at least 8 billion yuan from the sale, while MetaX is seeking a more modest 3.9 billion yuan. The development of the domestic chip market has become a major priority for Beijing, as the U.S. government continues to tighten its restrictions of more advanced semiconductors to China. In April, it rolled out new sanctions that prohibit the export of Nvidia Corp.'s H20 graphics processing units to the country. The H20 GPU was specially designed to get around earlier restrictions on exports to China, and was widely used by local artificial intelligence developers such as DeepSeek Ltd., Tencent Holdings Ltd. and Alibaba Group Holdings Ltd. The U.S. has also made efforts to prevent Chinese chip designers from utilizing the advanced foundries of companies such as Taiwan Semiconductor Manufacturing Co., and from buying chip manufacturing machinery from the Dutch supplier ASML Holding N.V., frustrating efforts to design and build their own advanced chips. As a result, the Chinese government is pushing for its domestic chip industry to build out its own semiconductor infrastructure, so it can manufacture its own GPUs, which are essential for AI training and inference. Last week, another Chinese chipmaker, Biren Technology Co. Ltd., raised around 1.5 billion yuan in funding as it prepares for its own IPO on the Hong Kong Stock Exchange. Moore Threads and MetaX are rivals to Nvidia. Their prospectuses show they have thrown millions of yuan at research and development in an effort to create more sophisticated GPUs that can be manufactured locally, resulting in heavy losses over the last three years. The latter posted revenue of 438 million yuan in 2024, but its R&D expenses resulted in an overall loss of 1.49 billion yuan that year. That said, it does appear to be making some progress. In 2023, it lost 1.67 billion yuan, and in 2022 its losses reached 1.84 billion. As for MetaX, it generated 743 million yuan in sales in 2024, resulting in a 1.4 billion yuan loss, growing significantly from the 871 million yuan loss it posted in 2023. The two companies say U.S. sanctions are both a risk, and a potential tailwind, because while they could hold up development plans, they could also create substantial market opportunities as China scrambles to keep up with its geopolitical rival in AI. Moore Threads, which was added to a U.S. government "Entity List" in 2023 that blocks it from accessing TSMC's foundries, said the restrictions have prompted Chinese firms to "accelerate domestic substitution processes." Meanwhile, MetaX argues the fact that domestic clients are turning to locally-produced GPUs will help it to establish closer ties with customers and suppliers. Omdia analyst He Hui told Reuters that Moore Threads and MetaX are poised to achieve the massive economies of scale needed to become profitable, due to China's push to attain self-sufficiency in the GPU market. "Moore Threads and MetaX are both considered leading GPU firms in China, and accessing the capital market would be crucial for them to continue their research and development," Hui said. One thing in their favor is the expertise of their executive leadership teams, which learned their trade in the U.S. Moore Threads was founded by a group of former Nvidia employees. For instance, its Chairman Zhang Jianzhong was previously the general manager of Nvidia's Chinese division. Meanwhile, MetaX is led by former employees of Advanced Micro Devices Inc., the biggest western rival to Nvidia. Its Chairman, Chen Weiliang, held the role of Global Head of GPU Product Line Design at AMD until he quit the company to found MetaX in 2020.

Two Chinese chip firms plan $1.7 billion IPOs, bet US export curbs to spur growth - The Economic Times

Beijing-based Moore Threads plans to raise 8 billion yuan, while Shanghai-based MetaX seeks 3.9 billion yuan, according to their IPO prospectuses filed on Monday. Both companies intend to list on Shanghai's STAR Market, the tech-focused board of the Shanghai Stock Exchange.Two Chinese artificial intelligence chip startups are seeking to raise a combined 12 billion yuan ($1.65 billion) in initial public offerings, hoping US curbs on advanced chip sales to China will boost local demand for their products, their filings show. Beijing-based Moore Threads plans to raise 8 billion yuan, while Shanghai-based MetaX seeks 3.9 billion yuan, according to their IPO prospectuses filed on Monday. Both companies intend to list on Shanghai's STAR Market, the tech-focused board of the Shanghai Stock Exchange. Their fundraising plans underscore growing efforts by Chinese chipmakers to capitalise on Beijing's push to develop domestic champions in graphics processing units (GPU), which are crucial for AI development. Reuters reported last week that Biren Technology, another Chinese AI chipmaker, raised about 1.5 billion yuan in fresh funding and was preparing for a Hong Kong IPO. Developing domestic chip champions has become increasingly urgent for Beijing, as the U.S. tightens export restrictions, with the latest rules implemented in April banning Nvidia's H20 chips, one of its most popular chips, from being shipped to China. The U.S. has also imposed restrictions since last year that prevent Chinese AI chip designers from accessing advanced global foundries like Taiwan Semiconductor Manufacturing for producing cutting-edge semiconductors. Moore Threads and MetaX both cited US sanctions as a major risk to their development but also emphasised the restrictions could create significant market opportunities. "U.S. restrictions on high-end GPU exports to China are prompting Chinese companies to accelerate domestic substitution processes," Moore Threads said. The company was added to the U.S. Entity List in late 2023 and is barred from partnering with TSMC. MetaX said "geopolitical pressures are forcing relevant domestic clients to use domestically-produced GPU products, which will help domestic GPU manufacturers establish closer ties with local customers and suppliers." The two firms design GPUs to compete with Nvidia products and have reported steep losses over the last three years, which they largely attributed to heavy research and development spending. Moore Threads generated revenue of 438 million yuan in 2024 but posted a loss of 1.49 billion yuan, adding to losses of 1.67 billion yuan in 2023 and 1.84 billion yuan in 2022. MetaX posted 2024 revenue of 743 million yuan against a 1.4 billion yuan loss, following losses of 871 million yuan in 2023 and 777 million yuan in 2022. "Moore Threads and MetaX are both considered leading GPU firms in China, and accessing the capital market in China would be crucial for them to continue their research and development," said He Hui, research director on semiconductors at Omdia. China's drive to achieve higher self-sufficiency in chips would help domestic GPU firms achieve economies of scale, crucial to generating higher revenue and profits, He said. Both companies were founded in 2020 by executives who previously worked at major U.S. chip firms. MetaX was founded by former AMD employees, including Chairman Chen Weiliang, who previously served as the U.S. chipmaker's global head of GPU product line design. Moore Threads was established by former Nvidia employees, including Chairman Zhang Jianzhong, who previously held the role of general manager for the AI chip giant's China operations. The two firms compete with a growing roster of domestic rivals including Huawei, Cambricon, Hygon and other startups.

Nvidia's Chinese Rivals Look To Cash In On US Tech Ban: Moore Threads, MetaX Plot $1.65 Billion IPO - Alibaba Gr Hldgs (NYSE:BABA), Baidu (NASDAQ:BIDU)

Two Chinese artificial intelligence chip startups, Moore Threads and MetaX, are planning to raise a combined 12 billion yuan ($1.65 billion) through initial public offerings (IPOs). What Happened: The two companies are betting on the U.S. export restrictions to boost the demand for their products in China, Reuters reported. Moore Threads, based in Beijing, aims to raise 8 billion yuan, while MetaX, based in Shanghai, is looking to raise 3.9 billion yuan. Both companies are planning to list on the STAR Market, the tech-focused board of the Shanghai Stock Exchange These fundraising plans highlight the increasing efforts of Chinese chipmakers to capitalize on Beijing's drive to develop domestic champions in graphics processing units (GPUs), which are crucial for AI development. See Also: Steve Jobs Once Spent Two Weeks Choosing A Washing Machine For His Palo Alto Home And He Got More 'Thrill' Out Of It Than Any Piece Of High Tech In Ages - Benzinga The U.S. has been tightening export restrictions on China, with the latest rules implemented in April banning the shipment of Nvidia's NVDA H20 chips, one of its most popular chips, to China. These restrictions have led to a sense of urgency in Beijing to develop domestic chip champions. Both Moore Threads and MetaX have cited U.S. sanctions as a major risk to their development, but have also emphasized that the restrictions could create significant market opportunities. The two companies design GPUs to compete with Nvidia products and have reported significant losses over the last three years, largely attributed to heavy research and development spending. Why It Matters: The move by Moore Threads and MetaX to go public amid U.S. export sanctions is part of a larger trend of Chinese companies seeking to reduce their reliance on foreign chipmakers. In May, Alibaba BABA, Baidu BIDU, and Tencent TCEHY began switching to homegrown chips as U.S. export controls and a dwindling stockpile of Nvidia processors eroded their ambitions. The move also aligns with China's broader push for self-sufficiency in chips, with major Chinese automakers aiming for 100% domestic chip supply by 2027. This push is being shepherded by China's Ministry of Industry and Information Technology, which regularly requires self-assessments of domestic chip adoption rates. Read Next: Mark Zuckerberg Once Predicted That This Technology Would Replace Your Phone -- A Decade Later, How Far Is Meta From Delivering On A 'More Natural' Future Photo: Maxx-Studio On Shutterstock BABAAlibaba Group Holding Ltd$112.64-0.68%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum90.57Growth94.32Quality44.58Value84.70Price TrendShortMediumLongOverviewBIDUBaidu Inc$85.14-0.72%NVDANVIDIA Corp$156.96-0.65%TCEHYTencent Holdings Ltd$64.50-%Market News and Data brought to you by Benzinga APIs

Two Chinese chip firms plan $1.7 billion IPOs, bet US export curbs to spur growth

BEIJING (Reuters) -Two Chinese artificial intelligence chip startups are seeking to raise a combined 12 billion yuan ($1.65 billion) in initial public offerings, hoping U.S. curbs on advanced chip sales to China will boost local demand for their products, their filings show. Beijing-based Moore Threads plans to raise 8 billion yuan, while Shanghai-based MetaX seeks 3.9 billion yuan, according to their IPO prospectuses filed on Monday. Both companies intend to list on Shanghai's STAR Market, the tech-focused board of the Shanghai Stock Exchange. Their fundraising plans underscore growing efforts by Chinese chipmakers to capitalise on Beijing's push to develop domestic champions in graphics processing units (GPU), which are crucial for AI development. Reuters reported last week that Biren Technology, another Chinese AI chipmaker, raised about 1.5 billion yuan in fresh funding and was preparing for a Hong Kong IPO. Developing domestic chip champions has become increasingly urgent for Beijing, as the U.S. tightens export restrictions, with the latest rules implemented in April banning Nvidia's H20 chips, one of its most popular chips, from being shipped to China. The U.S. has also imposed restrictions since last year that prevent Chinese AI chip designers from accessing advanced global foundries like Taiwan Semiconductor Manufacturing for producing cutting-edge semiconductors. Moore Threads and MetaX both cited U.S. sanctions as a major risk to their development but also emphasised the restrictions could create significant market opportunities. "U.S. restrictions on high-end GPU exports to China are prompting Chinese companies to accelerate domestic substitution processes," Moore Threads said. The company was added to the U.S. Entity List in late 2023 and is barred from partnering with TSMC. MetaX said "geopolitical pressures are forcing relevant domestic clients to use domestically-produced GPU products, which will help domestic GPU manufacturers establish closer ties with local customers and suppliers." The two firms design GPUs to compete with Nvidia products and have reported steep losses over the last three years, which they largely attributed to heavy research and development spending. Moore Threads generated revenue of 438 million yuan in 2024 but posted a loss of 1.49 billion yuan, adding to losses of 1.67 billion yuan in 2023 and 1.84 billion yuan in 2022. MetaX posted 2024 revenue of 743 million yuan against a 1.4 billion yuan loss, following losses of 871 million yuan in 2023 and 777 million yuan in 2022. "Moore Threads and MetaX are both considered leading GPU firms in China, and accessing the capital market in China would be crucial for them to continue their research and development," said He Hui, research director on semiconductors at Omdia. China's drive to achieve higher self-sufficiency in chips would help domestic GPU firms achieve economies of scale, crucial to generating higher revenue and profits, He said. Both companies were founded in 2020 by executives who previously worked at major U.S. chip firms. MetaX was founded by former AMD employees, including Chairman Chen Weiliang, who previously served as the U.S. chipmaker's global head of GPU product line design. Moore Threads was established by former Nvidia employees, including Chairman Zhang Jianzhong, who previously held the role of general manager for the AI chip giant's China operations. The two firms compete with a growing roster of domestic rivals including Huawei, Cambricon, Hygon and other startups. (Reporting by Liam Mo, Che Pan and Brenda Goh; Editing by Miyoung Kim and Sonali Paul)