China’s Biren Technology Secures $207 Million, Eyes Hong Kong IPO Amid Chip Race

Biren Technology, a Chinese artificial intelligence (AI) chip startup, has raised 1.5 billion yuan (approximately $207 million) in a new funding round, largely backed by state-linked investors. The move positions Biren for a Hong Kong initial public offering (IPO), potentially as early as August, according to sources familiar with the matter. The company’s valuation prior to this round stood at around 14 billion yuan.

The funding and IPO strategy align with China’s broader ambition to reduce its dependence on U.S. semiconductors amid intensifying export restrictions from Washington. In particular, China is emphasizing the development of domestic GPUs, which are essential for AI applications. Key contributors to the new funding include state-backed entities from Guangdong province and the Shanghai municipal government.

Biren had initially intended to list on the mainland but pivoted to Hong Kong due to tighter regulatory requirements and less flexibility for loss-making firms in mainland China. The company has yet to confirm IPO advisors. Despite regulatory and commercial hurdles, Biren has managed to maintain key partnerships with Chinese tech giants like China Mobile, China Telecom, and ZTE.

Founded in 2019, Biren gained attention in 2022 with the BR100 chip, boasting performance rivaling Nvidia’s H100. However, U.S. sanctions placed the firm on the Entity List in 2023, cutting off access to leading global chip manufacturers like TSMC. This move disrupted production and led to executive departures, including co-founder Xu Lingjie.

Despite operating at a loss and recording modest 2024 sales of 400 million yuan, Biren remains a notable player in China’s AI chip race. The market potential is significant—Morgan Stanley estimates Chinese GPU makers could control 70% of the domestic market by 2027. However, Biren faces stiff competition from Huawei and startups backed by tech heavyweights like Tencent.

Source: Reuters