Chinese chip startup Shanghai Biren Intelligent Technology Co. is reportedly considering an initial public offering (IPO) in Hong Kong later this year, as it aims to capitalize on the growing demand for its AI chips, which are being seen as alternatives to Nvidia’s banned products. According to sources familiar with the matter, the company is planning to file for the IPO in the coming weeks and is currently engaged in discussions with investors, including state-backed funds in Guangzhou, for a separate funding round that could raise approximately 2 billion yuan ($279 million). However, the specific details of the IPO, such as its size, are still yet to be determined.
Established in 2019, Biren specializes in graphics processing units and cloud computing. The company released its first general-purpose graphics processing unit in August 2022. Over the years, Biren has managed to secure around 4.7 billion yuan ($651 million) in funding from investors such as IDG Capital, Ping An Insurance Group, and China Merchants Capital. This financial backing has helped the company strengthen its position in the chip sector.
The decision to pursue an IPO in Hong Kong comes at a time when Biren is witnessing a surge in demand for its AI chips. Nvidia, a leading player in the chip industry, faced a setback when its products were banned due to concerns over national security. This ban created a significant opportunity for companies like Biren to fill the void in the market and provide alternative solutions through their AI chips.
By going public in Hong Kong, Biren aims to raise the necessary capital to further expand its operations and meet the growing demand for its products. The IPO would not only provide the company with a substantial influx of funds but also offer an opportunity for investors to participate in Biren’s future growth potential. Additionally, going public could enhance Biren’s reputation and credibility in the industry, paving the way for further partnerships and collaborations.
Biren’s decision to engage with state-backed funds in Guangzhou for a separate funding round showcases its intention to secure strategic investments and partnerships, which can further fuel its growth trajectory. By involving government-backed entities, Biren can leverage their resources and expertise to gain a competitive edge in the chip market.
While the IPO plans are still in their early stages, the market is eagerly awaiting further developments from Biren. The success of the IPO could position the company as a key player in the chip industry, especially in the wake of the ban on Nvidia’s products. As China continues to invest in developing its domestic chip industry, Biren’s IPO could serve as a significant milestone in the country’s ongoing efforts to become self-reliant in critical technological sectors.
In conclusion, Chinese chip startup Shanghai Biren Intelligent Technology Co. is considering an IPO in Hong Kong to take advantage of the increasing demand for its AI chips as alternatives to banned Nvidia products. With discussions underway with investors for a separate funding round, Biren aims to raise approximately 2 billion yuan ($279 million) while solidifying its position in the chip market. The IPO would provide the necessary capital for expansion and further partnerships, positioning Biren as a prominent player in the industry and contributing to China’s technological ambitions.
