Chinese AI chip start-up Biren Technology is gearing up for an initial public offering (IPO) to challenge Nvidia. The unicorn, valued at US$2.19 billion, has enlisted the help of Guotai Junan Securities to guide them through the IPO process in Shanghai. The tutoring process, required for all IPO applicants in China, may take between three to 12 months.
Following in the footsteps of crosstown rival Enflame, more Chinese chip designers are looking to raise capital in the public markets. In the past three years, the integrated-circuit industry in China has produced more unicorns than any other sector, according to a report by Great Wall Strategy Consultants. However, experts like Fang Fenglei caution against the sector’s heavy reliance on state-backed investments.