Chinese AI Chip Startups Moore Threads and MetaX Plan $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.

China's Domestic GPU Manufacturers Are Swiftly Making Moves In The Market; Now Advancing Toward Multi-Billion Dollar IPOs

Two of China's popular GPU manufacturers, Moore Threads and MetaX, are reportedly eying IPO prospects, following a massive surge in interest in their GPU solutions. With NVIDIA's influence over the Chinese GPU market starting to reduce, domestic firms, particularly Moore Threads and MetaX, seem to be seeing interest from the industry. Based on a report by UDN, it is revealed that Chinese GPU manufacturers are looking towards an IPO at the Shanghai Stock Exchange, and both of them have already filed the relevant paperwork. The firms are seeking to raise over 12 billion yuan ($1.65 billion) in an attempt to counter U.S. export restrictions and ultimately give China a viable alternative in the GPU sector. After the ban of NVIDIA's H20 AI accelerator from being sold in China, a new window opened up for domestic GPU manufacturers to come up with their offerings, and firms like Huawei, Moore Threads, and others introduced viable alternatives. In particular, with Huawei's Ascend AI chips, they manage to see massive adoption from local tech giants like Tencent and Baidu. Similarly, Moore Threads has been making strides in the consumer GPU sector through offerings such as the MTT S80 and the MTT S70. For professional workloads, the firm offers the MTT S4000 and S5000. Interestingly, both Moore Threads and MetaX are led by ex-AMD and ex-NVIDIA employees. Moore Threads is led by Zhang Jianzhong, a former NVIDIA executive responsible for the company's business in China. Similarly, MetaX's CEO Chen Weiliang is also a former AMD employee, being the global general manager for several generations of GPU design, so it is safe to say that the companies have decent talent onboard; however, they still need a lot of work to be done in order to meet the R&D standards of the likes of NVIDIA and AMD. While the US sanctions have put firms like Moore Threads at a disadvantage, the market does see it as an opportunity to come up with their domestic offerings, potentially putting NVIDIA/AMD out of the market.

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

Moore Threads Seeks IPO Amid China's Drive For Chip Independence

Enter your email to get Benzinga's ultimate morning update: The PreMarket Activity Newsletter The GPU maker hopes to benefit from China's drive to develop its domestic chip industry, as it navigates growing obstacles from U.S. sanctions Key Takeaways: Moore Threads has filed for an A-share IPO, reporting combined losses of 5 billion yuan over the last three years on modest but fast-growing revenue The company hopes to become a leader in China's GPU market, which is expected to grow tenfold by 2029 as domestic chips increasingly replace foreign imports It may be just five years old, but Moore Threads Technology is already looking to Beijing for more than $1 billion in assistance as tries to become an key Chinese supplier of the graphics processing units (GPU) that are central to powering AI applications. The high-tech chipmaker filed for an IPO on China's A-share market last week, where it's almost certain to attract interest from the country's vast field of state-run investors eager to assist Beijing in the country's quest for self-sufficiency in key technologies. Moore Threads is, in many ways, a product of the billions of dollars that China is pumping into such key tech sectors. It was founded at the height of U.S. sanctions against China, the same year that Washington imposed sweeping bans on leading tech firm Huawei. Its founders believe the company could benefit from new opportunities for Chinese companies to sell products like GPUs, which now mostly come from foreign suppliers and are key for development of AI and other sophisticated computing applications. Such ambitions come with their own risks, as Moore Threads found out in 2023 when it was subject to U.S. restrictions similar to those placed on Huawei. That action bars the company from manufacturing its products in partnership with companies like TSMC, a contract chip maker used by most of the world's most cutting-edge chip designers to make their products. In China's policy-driven climate, companies like Moore Threads are receiving preferential treatment that allows them to list ahead of other firms that have often waited longer, reflecting Beijing's desire to channel limited IPO funds to candidates in high-priority areas. The company's prospectus shows it aims to raise 8 billion yuan ($1.1 billion), a substantial amount that appears designed to capitalize on strong investor demand for anything AI-related, including makers of the AI chips. On the same day, rival MetaX also filed for a smaller IPO to raise 3.9 billion yuan, while Zhaoxin Semiconductor, a company focused on central processing units (CPU), also filed last month to raise 4.2 billion yuan. Like many of its peers, Moore Threads was founded by former employees of leading global chip firms. Co-founder and CEO Zhang Jianzhong previously served as global vice president and China general manager of Nvidia (NVDA.US), whose status as the global leader in GPUs has transformed it into one of the world's most valuable companies. Another co-founder, Zhang Yubo, was a senior architect at Nvidia's U.S. operation. According to corporate registration site Tianyancha, Moore Threads has raised at least 4.5 billion yuan to date through six funding rounds, though that list may be incomplete. Its investors include HongShan, formerly known as Sequoia China, as well as Shenzhen Capital Group, and internet giants Tencent and ByteDance. The company was valued at 25.5 billion yuan, according to a June report from local media Leifeng, which didn't specify when it attained that value. Mounting losses Despite its relatively high valuation, Moore Threads' youth is apparent in its modest, albeit fast-growing, revenue. The company generated just 438 million yuan last year, though that was more than triple the 124 million yuan for 2023, and light years ahead of its 46 million yuan in 2022, according to its prospectus. Meanwhile, its losses are massive but narrowing, falling from 1.84 billion yuan in 2022, to 1.67 billion yuan the next year and 1.49 billion yuan in 2024 Such losses are common among young chip companies due to the very high costs of GPU development. Moore Threads spent a combined 3.8 billion yuan on R&D in the last three years, including 1.4 billion yuan in 2024 alone. The company develops chips for data centers, which are increasingly used to power AI applications. It also makes chips for consumer devices such as smartphones and PCs. While Moore Threads didn't break down revenue by segment, data center chips are widely believed to contribute the majority of its revenue and represent the company's primary focus. Moore Threads has developed four generations of GPU products in its data center segment, including the latest S500, which the company claims is competitive with Nvidia's A100 in some areas. While that looks less impressive since the A100 is five years old, it still makes Moore Threads among the most technologically advanced Chinese GPU developers. Moore Threads believes the current environment will work to its advantage, dedicating significant space in its prospectus to explaining how Chinese localization policies will drive increased adoption of domestically produced GPUs. The company cited third-party research showing China's data center and cloud GPU market is expected to grow roughly tenfold from 99.7 billion yuan in 2024 to 1 trillion yuan in 2029, with domestic products increasingly replacing imports. Research from other companies supports such projections. Morgan Stanley said in a May client note that domestically made GPUs could generate 287 billion yuan in sales by 2027, capturing 70% of the Chinese market, up from 30% last year. Moore Threads is hardly the only company hoping to capitalize on the shift to domestic production. Others jumping on the GPU bandwagon include heavyweights like Huawei, as well as mid-tier players such as Cambricon (688256.SS), Hygon (688041.SH), MetaX, Biren, Iluvatar CoreX, and Tencent-backed Enflame. Major internet companies have also launched their own chip units, including Alibaba's T-Head and Baidu's Kunlun. Many of Moore Threads' peers are also pursuing IPOs. In addition to MetaX, companies including Enflame and Biren have filed for the "tutoring process" that's a requisite part of China's IPO process. Reuters reported last month that Biren has shifted its focus to a Hong Kong listing after initially filing for an A-share IPO, partly due to stricter regulatory requirements on the Mainland. A major challenge facing Chinese developers is U.S. sanctions like the ones Moore Threads faced in 2023, preventing it from producing its chips at the world's most advanced foundries. Such steps have forced Chinese companies to compete for limited advanced manufacturing capacity at leading domestic foundry SMIC, whose own expansion is also being constrained by U.S. export controls on essential chipmaking equipment. Moore Threads acknowledged that the U.S. restrictions have forced it to find domestic substitutions and take other measures. The company did not reveal which foundry it currently uses to make its chips, or whether it faces other manufacturing challenges. A successful IPO would provide Moore Threads with the cash it needs to stay competitive, with much of the funds earmarked for R&D, according to the prospectus. Investors looking for profits anytime soon might want to temper their expectations, since the company warned that it "may continue to incur losses." Still, such losses are unlikely to deter big state-backed investors, which are more likely to consider longer-term profit potential and helping Beijing to reach its policy objectives. 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)