China’s GPU Landscape: Biren Technology’s Record-Breaking IPO
Summary:
- Biren Technology has officially gone public in Hong Kong, marking a significant milestone for the Chinese GPU industry.
- The company raised a remarkable HK$5.375 billion, while its stock price soared up to 100% on its debut.
- With four major Chinese GPU firms now listed, the race to compete with global giants like Nvidia intensifies.
On January 2, 2026, Biren Technology completed its initial public offering (IPO) in Hong Kong, solidifying its position as the fourth major GPU company in China. Following the footsteps of Cambrian, Muxi, and Moore, Biren’s entry into the stock market is poised to elevate the competition in the AI computing sector.
Key IPO Highlights
- Opening Valuation: Biren Technology debuted with a stock price of HK$19.6, issuing 285 million shares and raising a total of HK$5.583 billion. After accounting for issuance expenses, the net amount raised was HK$5.375 billion.
- Overwhelming Demand: The IPO experienced an astronomical subscription multiple of 2,347.53 times, indicating strong investor interest.
- Stock Performance: Within hours of its debut, Biren’s stock price surged by over 86%, experiencing a peak intraday increase of more than 100%. The company now boasts a market capitalization of approximately 86.6 billion yuan.
Focus on Research and Development
The funds from Biren Technology’s IPO will primarily be allocated to advancing research and development in intelligent computing solutions. This includes:
- Developing new intelligent computing hardware.
- Enhancing software platforms.
- Fostering the commercialization of intelligent computing solutions.
- Covering general working capital expenses.
Financial Performance and Challenges
Despite its impressive IPO, Biren Technology has reported losses over the past few years.
- Revenue Trends: The company’s revenue has shown consistent growth: 499,000 yuan in 2022, 62.03 million yuan in 2023, and 337 million yuan in 2024.
- Cumulative Losses: Over the same period, Biren incurred significant losses: 1.474 billion yuan in 2022, 1.744 billion yuan in 2023, and 1.538 billion yuan in 2024, summing up to a total deficit of 4.75 billion yuan. The first half of 2025 saw revenue of 58.903 million yuan alongside another loss of 1.6 billion yuan.
Implications for the AI Industry
The surge in demand for AI computing power underscores its pivotal role in the burgeoning AI industry. As global restrictions on overseas AI computing chips tighten, the need for domestically produced AI chips becomes urgent. Biren Technology, along with its counterparts Cambrian, Muxi, and Moore, is tasked with bridging the gap between local capabilities and industry giants like Nvidia and AMD.
The continuous expansion of domestic AI computing firms, combined with the rollout of advanced manufacturing processes, suggests that the pace of development for local AI chips is set to accelerate. This evolution could reshape the competitive landscape, presenting both opportunities and challenges for existing players.
Conclusion
Biren Technology’s successful IPO not only marks a significant achievement for the company but also indicates a broader trend within China’s technology sector. With its commitment to innovation and strategic funding directed toward research and development, Biren is poised to play a crucial role in enhancing the nation’s AI capabilities. As competition intensifies, the stakes are rising for all participants in the GPU space, potentially transforming the future of AI computing in China and beyond.
For further insights into the evolving landscape of AI technology and investment opportunities, stay tuned as we continue to cover industry developments.
