Chinese AI Chip Startups Launch $1.7 B IPOs Ahead of U.S. Export Curbs

Chinese AI‑chip specialists Moore Threads (Beijing) and MetaX (Shanghai) filed for IPOs on Shanghai’s STAR Market on July 1, targeting a combined ¥12 billion (~$1.65 billion)—¥8 billion from Moore Threads and ¥3.9 billion from MetaX.

🧠 Strategic Timing Amid U.S. Sanctions

With the U.S. imposing restrictions on high-end GPU exports—including Nvidia’s H20 and limiting access to cutting-edge foundries like TSMC—both firms see opportunities in accelerating China’s push for domestic GPU capabilities. Both were added to the U.S. Entity List (Moore Threads in late 2023), restricting foreign collaboration. Despite flagging U.S. measures as a risk, they emphasize the sanctions will drive local demand.

📉 Heavy Investments, Deep Losses

Both startups reported significant losses due to aggressive R&D spending:

• Moore Threads recorded a ¥1.49 billion loss in 2024 (¥438 million in sales).
• MetaX saw a ¥1.4 billion loss on ¥743 million revenue. Founded in 2020 by ex-Nvidia (Moore Threads) and ex‑AMD (MetaX) execs, these firms are seen as front-runners in China’s domestic GPU race.

🌐 Broader Chip Self‑Sufficiency Push

China's strategic push for semiconductor independence includes backing from competitors like Huawei, Cambricon, Enflame, and Hygon. Financial backing through public markets is critical for scaling and sustaining R&D. Omdia analyst He Hui notes IPO proceeds are essential to reach economies of scale and enhance competitiveness.

🔮 What’s Next

• Listing & expansion: Both firms aim to use IPO capital to expand production and accelerate innovation domestically.
• Competitive landscape: They’ll face fierce competition from both domestic giants and each other.
• Policy-driven growth: With U.S. export restrictions likely to tighten, China’s GPU ecosystem stands to gain momentum—and international influence.