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Investing.com -- Two Chinese artificial intelligence chipmakers are preparing to raise a combined $1.66 billion through initial public offerings, as Beijing intensifies efforts to build a self-sufficient semiconductor industry, according to the Wall Street Journal.
Beijing-based Moore Threads plans to raise 8 billion yuan ($1.12 billion), while Shanghai-based MetaX targets 3.9 billion yuan, the WSJ reported.
Both companies filed their IPO prospectuses with the Shanghai Stock Exchange on Monday and aim to list on its STAR Market, a tech-focused board.
Founded in 2020 by former Nvidia (NASDAQ:NVDA) executive Zhang Jianzhong, Moore Threads develops graphics processing units (GPUs) for AI applications.
Proceeds from the IPO are expected to be used to fund new chip research and support working capital, said the WSJ. The company was added to the U.S. entity list in 2023, limiting access to American technology.
MetaX, also launched in 2020 by ex-AMD employees, including Chairman Chen Weiliang, focuses on full-stack GPU chip solutions. It plans to use its IPO funds to advance high-performance GPU development.
Despite strong revenue growth, both firms remain unprofitable. Moore Threads’ revenue more than tripled to 438.85 million yuan in 2024, but it posted a net loss of 1.49 billion yuan.
MetaX saw revenue rise over tenfold to 743.1 million yuan, yet recorded a 232.5 million yuan loss due to limited chip adoption and high R&D expenses, said the WSJ.
The IPOs reflect China’s growing push to close its technology gap with the United States.