By
Svetlana Soroka
April 30th, 2024
As the IPO landscape evolves and market conditions change, it is possible that Biren’s plans may be subject to further adjustments.
Shanghai-based Biren Intelligent Technology Co, a Chinese chip and AI company, is reportedly considering an Initial Public Offering (IPO) in Hong Kong later this year.
According to a Bloomberg report, sources familiar with the matter stated that the company is planning to file for the first-time share sale in the coming weeks. The information, shared by anonymous insiders, sheds light on the company’s intentions to capitalize on the growing demand for its AI chips and secure the necessary capital to fuel its expansion.
Simultaneously, Biren is engaged in discussions with potential investors, including state-backed funds in Guangzhou, for a separate funding round. The sources noted that this funding round has the potential to raise approximately 2 billion yuan ($279 million).
The proposed IPO and funding round comes at a time when the demand for AI chips is skyrocketing across various industries. Biren’s advanced chip solutions have gained recognition for their superior performance, energy efficiency, and scalability, positioning the company as a key player in the Chinese AI chip market.
While the Chinese chip startup is actively considering an IPO in Hong Kong, specific details such as the size and timeline of the IPO are yet to be determined. The company has not provided any official comment on the matter.
As the IPO landscape evolves and market conditions change, it is possible that Biren’s plans may be subject to further adjustments. The company’s priority will be to ensure that its IPO and fundraising efforts align with its strategic objectives and allow for optimal market reception and investor participation.
Biren Stepped Up to Bridge China’s AI Gap
It is worth noting that Biren’s ongoing fundraising endeavors are in line with the Chinese government’s accelerated campaign to bolster its domestic semiconductor industry. This move comes in response to a US-led effort that restricted Chinese companies from purchasing advanced chips used for AI development.
The restrictions imposed on Chinese companies’ access to advanced chips, including certain NVIDIA Corp (NASDAQ: NVDA) products, spurred a need for domestic alternatives. Biren has emerged as a key player in this regard, focusing on the development of Graphics Processing Units (GPUs) and cloud computing solutions.
These areas are essential for AI applications, as GPUs provide the necessary computational power to process complex algorithms efficiently. Meanwhile, Biren has successfully raised approximately 4.7 billion yuan from notable investors, including IDG Capital, Ping An Insurance Group Co., and China Merchants Capital. This significant funding underscores the confidence investors have in the company’s potential and its position as a promising player in the semiconductor industry.
In addition to securing substantial funding, Biren achieved a significant technological milestone. In August 2022, the company announced the release of its first general-purpose GPU, which set a new record in global computing power. This accomplishment underscores the company’s commitment to pushing the boundaries of performance and efficiency in the semiconductor field.