China’s leading artificial intelligence (AI) server provider xFusion has taken a major step toward a public listing after hiring investment bank Citic Securities to guide it through the initial public offering (IPO) preparation process, according to a recent regulatory filing.
A filing on the website of the China Securities Regulatory Commission (CSRC) shows that Henan province-based xFusion signed an agreement with Citic Securities on December 31 to begin what is known in China as the IPO “tutoring” phase. This programme, scheduled to run from January through April or May, is designed to train executives and align the company’s operations with the disclosure, governance, and compliance requirements of a stock market listing.
The move formally places xFusion among a fast-growing cohort of Chinese technology and AI infrastructure companies preparing to tap equity markets, amid surging investor appetite for businesses tied to next-generation computing and AI workloads.
xFusion was spun off from telecoms giant Huawei in 2021 as part of a broader restructuring prompted by U.S. sanctions that restricted Huawei’s access to key technologies and overseas markets. Since then, xFusion has rapidly emerged as a central player in China’s AI and cloud computing hardware stack.
According to information published by the Henan provincial government, xFusion was China’s top AI server provider in 2024, with sales exceeding 40 billion yuan (around $5.72 billion). Its servers underpin the training and deployment of advanced AI models, supporting customers in telecoms, finance, transportation and internet sectors, as well as cloud and data center operators.
On its corporate materials, xFusion describes itself as a global provider of computing infrastructure and services with operations spanning more than 100 countries and regions. The company’s growth has been driven by demand for high-performance computing to support AI applications such as large language models, recommendation engines, autonomous systems and data analytics.
Consultancy Greatwall Strategy Consultants valued xFusion at nearly $9 billion in 2023, suggesting significant potential scale for an eventual listing, depending on market conditions, regulatory approvals and the chosen venue.
xFusion’s planned IPO comes against the backdrop of a powerful rally in Chinese AI and semiconductor-linked stocks. Authorities in Beijing have accelerated approvals for IPOs in AI, chipmaking and related hardware sectors as part of a broader industrial strategy aimed at strengthening domestic alternatives to U.S. technology amid ongoing export controls.
Several Chinese AI chipmakers have already taken advantage of this policy tailwind:
This feverish demand has helped propel the CSI AI Index to a gain of about 67% in 2025, underscoring the extent of investor enthusiasm for companies building the hardware, software and infrastructure that power AI systems.
xFusion’s trajectory is closely aligned with Beijing’s strategic focus on technological self-sufficiency. As U.S. export controls tighten access to advanced chips and AI accelerators, China has prioritized the development of domestic computing infrastructure—from AI servers and data centers to homegrown chipmakers—to ensure that Chinese companies can continue to train and deploy large-scale AI models.
xFusion’s product portfolio focuses on high-performance AI servers and related computing platforms, designed to handle intensive workloads ranging from model training to inference in large data centers. The company’s technology is a critical component in the broader ecosystem that supports applications such as generative AI, industrial automation, smart cities and cloud services.
State-backed investors further underline xFusion’s strategic importance. Local media report that shareholders include China Telecom Group Investment and China Mobile Capital Holding, investment arms of two of the country’s largest telecom operators. Their involvement provides both financial backing and deep integration into China’s core network and cloud infrastructure.
The CSRC filing does not specify where xFusion intends to list, and no official timetable for an IPO has been announced. However, the timing of the tutoring agreement with Citic Securities and the current market climate suggest the company is building momentum toward a domestic mainland listing—most likely on one of the Shanghai boards—or a potential dual-track option that could include Hong Kong.
Market observers note that a successful offering could significantly increase xFusion’s valuation from the roughly $9 billion level estimated in 2023, especially if AI-related equity inflows remain strong and the company can demonstrate sustained revenue growth. Some analysts have speculated that, depending on the listing venue and market sentiment at the time of pricing, the company’s valuation at IPO could be materially higher than its earlier private estimates.
xFusion operates in a fiercely competitive segment that includes both domestic peers and international server manufacturers. Within China, the company is part of a broader push to build a vertically integrated AI stack—from chips to servers to software frameworks—that reduces reliance on foreign suppliers.
Key growth drivers for xFusion include:
Market observers note that a successful offering could significantly increase xFusion’s valuation from the roughly $9 billion level estimated in 2023, especially if AI-related equity inflows remain strong and the company can demonstrate sustained revenue growth. Some analysts have speculated that, depending on the listing venue and market sentiment at the time of pricing, the company’s valuation at IPO could be materially higher than its earlier private estimates.
Market observers note that a successful offering could significantly increase xFusion’s valuation from the roughly $9 billion level estimated in 2023, especially if AI-related equity inflows remain strong and the company can demonstrate sustained revenue growth. Some analysts have speculated that, depending on the listing venue and market sentiment at the time of pricing, the company’s valuation at IPO could be materially higher than its earlier private estimates.
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