Reuters: Chinese AI Chip Giants Plan to Raise 12 Billion Yuan, Betting on Domestic Substitution
Reuters, July 1 - Two Chinese artificial intelligence (AI) chip startups, MoLeXianCheng and MuXi, are planning to conduct their initial public offering (IPO) on the Shanghai Science and Technology Innovation Board, aiming to raise up to 12 billion yuan (about 1.65 billion US dollars), betting that U.S. export restrictions on China will stimulate demand for their graphics processing unit (GPU) products in the domestic market.
The Beijing-based MoLeXianCheng aims to raise 8 billion yuan, while the Shanghai-based MuXi plans to raise 3.9 billion yuan. Both companies believe that U.S. restrictions on high-end GPU exports to China are prompting Chinese enterprises to accelerate the process of domestic substitution, bringing them significant market opportunities. However, they also face continuous losses: MoLeXianCheng generated revenue of 438 million yuan in 2024, with a net loss of 1.49 billion yuan, and cumulative losses exceeding 5 billion yuan over the past three years; MuXi generated revenue of 743 million yuan in 2024, with a net loss of 1.4 billion yuan, and cumulative losses exceeding 3 billion yuan over the past three years, mainly due to high R&D investment. He Hui, director of semiconductor research at market research firm Omdia, pointed out that these two companies are considered leading GPU enterprises in China, and entering the Chinese capital market is crucial for their continued R&D. China's efforts to increase chip self-sufficiency will help domestic GPU companies achieve economies of scale. Both companies were founded in 2020 by executives who previously worked at U.S. chip companies.
Original article: https://www.toutiao.com/article/1836424269396992/
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