Moore Threads, MetaX seek $1.7b in China IPOs

Two Chinese AI chipmakers, Moore Threads and MetaX, are planning to raise a total of 12 billion yuan (US$1.68 billion) through initial public offerings on Shanghai’s STAR Market.

Filings submitted on June 30, 2025 indicate that Moore Threads aims to secure 8 billion yuan (US$1.12 billion), while MetaX is seeking 3.9 billion yuan (US$544 million).

These fundraising efforts occur as Beijing accelerates its push to develop domestic GPU manufacturers amidst increasing US restrictions on chip exports to China.

Both Moore Threads and MetaX have reported significant losses in recent years, primarily due to research and development expenses.

Founded in 2020 by former executives from major US chip firms, both companies aim to compete with international GPU manufacturers such as Nvidia.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ “Creative insecurity” driving China’s chip innovation

US sanctions on Chinese semiconductors have paradoxically accelerated domestic innovation rather than simply constraining growth.

Research shows that external threats from US restrictions have directly stimulated technological advancements, with China achieving breakthroughs including SMIC’s development of a 7nm chip in 2023 despite being cut off from advanced equipment1.

This explains why Moore Threads and MetaX both cite US sanctions as both a risk and an opportunity in their IPO filings. They’re benefiting from external pressure driving internal innovation.

The correlation between increasing US sanctions and growing Chinese semiconductor capabilities suggests restrictions may be having unintended consequences, creating domestic champions they aimed to prevent1.

This dynamic is reshaping the competitive landscape as Chinese firms prioritize technological self-sufficiency, evidenced by the heavy R&D spending that explains both companies’ substantial losses.

2️⃣ The performance gap with Nvidia remains substantial despite progress

Despite the optimistic tone of Chinese GPU startups’ IPO filings, market data reveals they face significant challenges in matching Nvidia’s technological edge and ecosystem advantages.

Even Huawei, China’s most advanced domestic chip competitor, sold only about 200,000 units of its flagship Ascend 910B in 2024 compared to Nvidia’s over 1 million H20 chips in the same market2.