Chinese AI chipmakers Biren and Iluvatar race to Hong Kong IPO amid chip funding frenzy

Chinese AI Chipmakers Launch Dual Hong Kong IPO Push

Shanghai Biren Intelligent Technology Co has begun bookbuilding for a Hong Kong IPO aimed at raising as much as HK$4.85 billion ($624 million), marking a watershed moment as the first mainland GPU developer to list in the city 1

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. The company is offering approximately 247.7 million shares at a price range of HK$17 to HK$19.60 per share, with trading set to commence on January 2, 2026 1

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. Just days after Biren's filing, rival Shanghai Iluvatar CoreX Semiconductor Co also passed its listing hearing and made its first public filing for a Hong Kong IPO targeting around $300 million 2

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. This dual push by GPU developers signals an accelerating race among Chinese AI chipmakers to secure offshore capital as they attempt to fund AI chip development and challenge Nvidia's dominance.

GPU Startups Ride Investor Frenzy After Spectacular Debuts

The timing of these Hong Kong IPO plans capitalizes on extraordinary investor appetite following recent mainland listings. Moore Threads Technology saw its shares surge roughly 425% on its first day of trading in Shanghai, while MetaX Integrated Circuits climbed about 693% by the close of its debut session 1

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. This Hong Kong chip frenzy reflects strong investor belief in China's drive for technological independence in AI hardware, particularly as U.S. trade restrictions limit what Nvidia and other international leaders can sell to Chinese companies 2

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. Biren has secured commitments from 23 cornerstone investors who agreed to subscribe to roughly $372.5 million worth of shares with a six-month lock-up period, including Qiming Venture Partners, Ping An Group, UBS, Digital China, Lion Global Investors, and Eastspring Investments 1

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Revenue Growth Masks Widening Losses and Scale Challenges

While these GPU startups show rapid revenue expansion, the absolute numbers reveal companies still in early commercialization stages. Founded in 2019, Biren began generating revenue from its intelligent computing solutions only in 2023, reporting revenue of 336.8 million yuan ($47.8 million) last year, followed by 58.9 million yuan in the first half of 2025 1

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. The company disclosed pending and contracted orders totaling about 2.1 billion yuan to support near-term growth 1

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. Iluvatar CoreX showed stronger momentum with revenue reaching 539.5 million yuan ($76.6 million) in 2024, nearly double the 289 million yuan in 2023, and jumping another 64% year-over-year to 324 million yuan in the first half of this year 2

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However, widening losses paint a sobering picture. Biren's total loss for the first half of 2025 rose 32.3% year-over-year to nearly 9 billion yuan, reflecting heavy spending on research, software development, and commercialization 1

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. Iluvatar's loss for the same period was nearly double its revenue 2

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. The scale gap remains vast—Iluvatar delivered just 52,000 chips as of June, a tiny fraction of the nearly 2 million chips Nvidia moved in China in 2024 alone, according to IDC 2

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U.S. Trade Restrictions Force Domestic Supply Chain Pivot

Biren was added to Washington's Entity List in October 2023, limiting its access to certain foreign technologies and suppliers and contributing to a 108.7 million yuan loss that year 1

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. The company has since emphasized greater reliance on domestic supply chains while continuing to develop data center-class AI accelerators 1

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. U.S. trade restrictions implemented in late 2024 effectively cut off Chinese AI chipmakers from working with contract chip foundry TSMC, which dominates the global market for advanced chip manufacturing 2

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. In its prospectus, Biren cited global political and economic factors as ongoing risks to its financial position and path to profitability 1

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. These general purpose GPUs face a major technology gap that will limit their ability to capture market share from established players.

Broader Wave of AI Firms Tap Hong Kong Markets

Biren's listing adds to a broader wave of mainland technology firms pursuing Hong Kong floats to fund AI chip development. AI startup MiniMax recently cleared its IPO hearing and is also due to launch in January, while "AI tiger" Zhipu has completed the same process 1

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. Backed by Alibaba Group Holding and Tencent Holdings, MiniMax is expected to direct IPO proceeds toward research and development as competition intensifies 1

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. Search leader and autonomous driving specialist Baidu announced this month it was evaluating a potential spinoff and listing of its AI chip unit, Kunlunxin, also in Hong Kong 2

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. Alongside Biren and Enflame Technology, companies like Moore Threads and MetaX are often grouped as China's "four little dragons" in the GPU sector, each seeking to challenge Nvidia's dominance in AI accelerators . Investors will watch whether Hong Kong's more internationally focused investor base shows the same enthusiasm as mainland markets, and whether these firms can achieve self-sufficiency while navigating geopolitical headwinds.