Chinese chip designer Moore Threads is preparing for an IPO against the backdrop of United States technology sanctions.

The company, founded by a former Nvidia executive, has transitioned to a joint-stock company and increased its capital to 330 million yuan, approximately US$46 million.

The startup, based in Beijing, is gaining attention from both private and government investors.

China’s effort to enhance domestic production of advanced chips follows US restrictions on Nvidia GPUs for AI training.