Chinese AI Chipmaker Secures Major Investment
Chinese artificial intelligence chip startup Biren Technology has raised approximately 1.5 billion yuan ($207 million) in new funding, marking a significant step as the company prepares for an initial public offering (IPO) in Hong Kong. This development comes at a crucial time as China accelerates efforts to develop domestic alternatives to U.S. semiconductors in light of tightening export restrictions from Washington[5][4].
Strategic Shift to Hong Kong Listing
- Biren initially aimed to list on a mainland Chinese exchange but decided to pursue a Hong Kong IPO instead. Sources cited strict regulatory requirements on the mainland, including a lower tolerance for loss-making companies, as well as broader policy shifts in China’s capital markets as driving this change.
- The company is targeting to file for its Hong Kong IPO in the third quarter of 2025, with some reports indicating the process could begin as early as August[4][5].
State-Backed Support and Market Ambitions
- The recent funding round was led mainly by investors linked to the Chinese government, including funds from Guangdong province and the Shanghai municipal government. This underscores Beijing’s strong support for building a robust, homegrown graphics processing unit (GPU) sector—a key technology for AI development[5][4].
- Before this latest fundraising, Biren was valued at roughly 14 billion yuan, according to sources familiar with the company's finances[4].
China’s Domestic GPU Drive Intensifies
- The push for self-sufficiency in chips such as GPUs has intensified after new U.S. measures, imposed in April, restricted American companies, including
Nvidia, from selling advanced AI chips in China. Investment bank Morgan Stanley recently estimated that China’s domestic GPU makers could capture up to 70% of the market by 2027, up from 30% last year[4].
- The potential market is significant, with sales by Chinese AI chip companies projected to reach 287 billion yuan within two years[4].
Company Background and Milestones
- Biren was founded in 2019 by Zhang Wen, a former executive at the facial-recognition AI company SenseTime, and Jiao Guofang, who previously worked at
Qualcomm and Huawei[4].
- The company gained industry attention in 2022 by launching its BR100 chip, which it claimed had performance comparable to
Nvidia’s advanced H100 AI processor, highlighting its ambition to become a central player in the global AI chip market[4].
Outlook
With robust backing from state-linked investors and an IPO on the horizon, Biren Technology is emerging as a key contender in China’s evolving AI semiconductor landscape. The company's trajectory will be closely watched as it navigates both global market challenges and fierce domestic competition.
