Tech war: US-sanctioned Chinese AI chip rival to Nvidia, Biren Technology, plans IPO

The Shanghai-based unicorn, seen as a potential Nvidia competitor on the mainland, has begun its IPO tutoring process

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Biren Technology is one of several Chinese AI chip designers trying to take advantage of the absence of Nvidia’s advanced chips on the mainland. Photo: Handout

Published: 4:00pm, 12 Sep 2024Updated: 3:46pm, 25 Sep 2024

Artificial intelligence (AI) chip start-up Biren Technology, one of China’s best hopes for challenging Nvidia, has hired an investment bank to commence the required “tutoring” process, a precursor to an initial public offering (IPO) in the country.

The Shanghai-based unicorn – valued at US$2.19 billion last November, according to venture deal tracker Pitchbook – has hired the city’s largest brokerage, Guotai Junan Securities, to coach company executives on IPO-related issues, the China Securities Regulatory Commission (CSRC) said on Wednesday.

The tutoring process, which is mandatory for all IPO applicants in China before filing a listing plan, usually takes between three to 12 months. Neither Biren nor the CSRC has disclosed the planned location or fundraising target for the IPO.

Biren’s move comes two weeks after crosstown rival Enflame kicked off its tutoring process, as more Chinese chip designers look to raise capital in the public markets.

Zhang Wen, founder of Biren Technology. Photo: Handout

In China, the integrated-circuit industry has bred more unicorns than any other sector in the past three years, according to a report earlier this week by Great Wall Strategy Consultants. However, the country’s tech sector has been too heavily reliant on state-backed investments, which could lead to a “big problem”, said Fang Fenglei, widely known as China’s “first investment banker”, at a forum on Wednesday.