Biren Technology, a rising Chinese AI chip startup, has reportedly raised 1.5 billion yuan ($207 million) in a fresh funding round backed primarily by state-linked investors, as it prepares for a Hong Kong IPO as early as August, according to sources familiar with the matter.
The funding underscores Beijing’s broader effort to strengthen its domestic semiconductor industry, particularly in graphics processing units (GPUs) essential for artificial intelligence development. The move also comes amid intensifying U.S. export restrictions on advanced chips, which have limited China’s access to key technologies from firms like Nvidia.
Shift from Mainland to Hong Kong Listing Reflects Regulatory Realities
While Biren originally filed for a listing in mainland China in 2023, the company has since pivoted to Hong Kong in response to tougher IPO rules on the mainland that limit public offerings by loss-making firms. The startup is expected to submit its listing application in Q3 2025, possibly as early as August, though it is unclear whether it has officially appointed IPO advisers.
Prior to this latest fundraising, Biren was valued at around 14 billion yuan, according to sources. The company declined to comment on the valuation or its IPO plans.
Strategic Investors Signal Government Backing
Sources say the funding round included provincial investment arms from Guangdong and Shanghai, reflecting strong government interest in building national champions in the GPU space. These chips are vital to AI applications and data center operations, an area where U.S. firms currently dominate.
U.S. export controls introduced in April 2025 have already forced Nvidia to halt sales of its H20 AI chips to China, adding urgency to China’s quest to scale local alternatives.
Biren’s Background: High Ambitions, Regulatory Roadblocks
Founded in 2019, Biren’s leadership includes veterans from major tech firms like SenseTime, Qualcomm, and Huawei. The company made headlines in 2022 with its BR100 chip, which was billed as a domestic rival to Nvidia’s H100 processor.
However, in 2023, Biren was added to the U.S. Entity List, effectively cutting off its access to world-class foundries like Taiwan Semiconductor Manufacturing Company (TSMC). This restriction has severely affected its production capabilities and led to executive shake-ups, including the departure of co-founder Xu Lingjie.
Despite these setbacks, Biren’s general-purpose GPUs are reportedly deployed in intelligent computing centers across China. Its commercial partners include China Mobile, China Telecom, ZTE, and the Shanghai AI Laboratory—many of which have themselves been targeted by U.S. sanctions or investigations.
Revenue Remains Modest, Losses Persist
According to sources, Biren continues to operate at a loss, recording just 400 million yuan in revenue in 2024, a relatively small figure given its valuation and market ambition. Nevertheless, Morgan Stanley estimates that Chinese GPU makers could grow their market share to 70% domestically by 2027, up from 30% last year, representing a potential 287 billion yuan market.
Biren faces stiff competition from local heavyweights such as Huawei, and emerging rivals like Enflame (backed by Tencent) and Metax.
Outlook: Strategic Relevance Amid Geopolitical Tech Race
Biren’s story reflects both the promise and peril of China’s efforts to build a self-sufficient AI hardware ecosystem in a fragmented and increasingly protectionist global tech environment.
The upcoming Hong Kong IPO, if successful, could provide a financial lifeline and broader visibility, though long-term viability will depend on its ability to scale production, diversify revenue streams, and navigate ongoing U.S. restrictions.
With government support, an expanding domestic market, and geopolitical tailwinds pushing for tech independence, Biren may yet emerge as a pillar in China’s AI infrastructure race—but it must first survive intense headwinds in the interim.