Chinese AI Chip Unicorn, BirenTech, Starts IPO Process Amid US Trade Tensions
SHANGHAI, CHINA – September 12, 2024 – BirenTech, a leading Chinese AI chip unicorn, has officially commenced its IPO process, aiming to list on the Shanghai Stock Exchange’s STAR Market. The company has filed a First Public Offering of Stocks and Listing Counseling Record Report with the China Securities Regulatory Commission (CSRC), signifyingthe start of its IPO journey. Guotai Junan Securities has been appointed as the counseling firm for this endeavor.
This move comes on the heels of the recent IPO of another Chinese AI chip company,燧原, and follows thelisting of AI chip first stock Cambrian. BirenTech’s IPO is expected to spark a new wave of AI chip listings in China, solidifying the country’s position as a major player in the global AI hardware market.
BirenTech, established in 2019, is dedicated to developing original general-purpose computing systems and building efficient hardware and software platforms. The company aims to provide comprehensive solutions in the field of intelligent computing, initially focusing on cloud-based general-purpose intelligent computing and gradually expanding its offerings to encompass AItraining and inference across various domains.
In August 2022, BirenTech unveiled its first self-developed general-purpose GPU chip, BR100, which boasts a groundbreaking global computing power record. This chip is a pioneer in China for its adoption of Chiplet technology, PCIe 5.0 interface, and CXL interconnect protocol. The launch of BR100 marked a significant milestone, as it broke the previous global computing power record held by international giants, demonstrating the prowess of Chinese companies in the GPU sector.
BirenTech’s client base spans multiple industry leaders in telecommunications, AI,and other sectors. Notable partners include China Mobile, China Telecom, SenseTime, State Grid Smart Grid Research Institute, Shanghai Intelligent Computing Technology, Shanghai Artificial Intelligence Laboratory, and the China Academy of Information and Communications Technology.
In terms of financing, BirenTech has secured multiple rounds of funding, totaling over 50billion yuan (approximately $7 billion). Investors include prominent venture capital firms like Qiming Venture Partners, IDG Capital, Walden International, Ping An Group, Hillhouse Capital, Gree Ventures, Sinovation Ventures, Yunhui Capital, Guosheng Capital, and China Merchants Capital.
The company’s shareholder structure revealsthat Shanghai Biliren Enterprise Management Consulting Partnership (Limited Partnership) holds 12.65% of the shares, Wen Zhang (BirenTech’s founder, chairman, and CEO) owns 12.48%, QM120 Limited holds 5.58%, and Liang Xiaoyaoowns 5.25%. BirenTech does not have a controlling shareholder.
According to the Hurun Rich List of Unicorns, BirenTech is valued at 15.5 billion yuan (approximately $2.17 billion). Upon listing, the company’s valuation is expected to surpass thisfigure.
However, BirenTech’s journey to IPO comes amid heightened US-China trade tensions. In October 2023, the US Department of Commerce’s Bureau of Industry and Security (BIS) added BirenTech and 12 other GPU entities to its Entity List, requiring USapproval for any technology or equipment related to these companies.
Despite these challenges, BirenTech continues to innovate. In September 2024, nearly a year after being placed on the Entity List, the company launched China’s first heterogeneous chip mixed training technology. At the 2024 GlobalAI Chip Summit, BirenTech unveiled its self-developed heterogeneous GPU collaborative training solution, HGCT. This solution boasts a communication efficiency exceeding 98% and an end-to-end training efficiency of 90-95%, effectively addressing the challenge of isolated heterogeneous computing power for large models.
ZhangWen, BirenTech’s CEO, has emphasized the importance of capital, talent, and large-scale application scenarios in driving success in the chip industry, particularly in the field of general-purpose intelligent chips. He believes that the flow of talent will eventually narrow the gap between China and the US, despite the challenges. China’s strengths lie in vertical application domains, including open-source models. Zhang Wen anticipates that the gap between China and the US in AI capabilities will gradually close as competition intensifies, pushing domestic companies to continuously enhance their innovation capabilities.
While acknowledging the relatively low return on investment in the AI industry, Zhang Wenremains optimistic about the future. He predicts that AI will have a significant impact on society in the next 5-10 years, although its immediate impact will be limited compared to the transformative influence of mobile internet over the past three decades.
BirenTech’s IPO journey is a testament to the growing strength ofChina’s AI chip sector. Despite the challenges posed by US trade restrictions, the company’s commitment to innovation and its ambition to become a global leader in the AI hardware space are evident. The success of BirenTech’s IPO will be closely watched as a barometer of the health of China’s AI industryand its ability to compete on the global stage.
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