Moore Threads’ IPO frenzy fires up China’s home-grown GPU drive

Moore Threads, a Beijing-based GPU maker, saw its IPO oversubscribed by over 4,000 times, raising about 8 billion yuan and valuing the company at 53.7 billion yuan. The high demand underscores China's push for home-grown AI chips. Founded by ex-Nvidia VP James Zhang, Moore Threads has strong backing and has developed four GPU architectures despite being on the US Entity List. The company reported significant revenue growth but remains unprofitable due to high R&D costs.

Chinese onshore investor frenzy for artificial intelligence chips has intensified, with the initial public offering (IPO) of Beijing-based graphics processing unit (GPU) maker Moore Threads drawing more than 4,000 times subscription from retail investors this week.\nThe red-hot demand for Moore Threads highlights China’s determination to build home-grown alternatives to Nvidia’s chips, and is expected to accelerate listing plans for other domestic GPU developers, from MetaX to Biren Technology.\nCambricon Technologies, a Shanghai-listed AI chipmaker, has also become one of the most sought-after stocks in the city, with its share price doubling in 2025.\nBacked by tech giants including Tencent Holdings and ByteDance, Moore Threads opened lottery-style subscriptions on Monday at an IPO price of 114.28 yuan.\nOnline orders from retail investors exceeded the number of shares on offer by more than 4,000 times, resulting in a final allotment rate of just 0.036 per cent, according to a company filing on Wednesday.\nOn Shanghai’s Nasdaq-style Star Market, qualified institutional investors receive proportionate allocations, while retail investors subscribe through a system akin to a lucky draw.\nMoore Threads raised about 8 billion yuan, valuing the company at 53.7 billion yuan. Its debut date has yet to be finalised.\nChinese authorities have been guiding private capital towards supporting the country’s drive for technological self-sufficiency, particularly in semiconductors. It took Moore Threads just 88 days from filing in June to receiving approval, making it one of the fastest IPOs to secure the go ahead.\n\nMoore Threads was founded in 2020 by James Zhang Jianzhong, a former Nvidia vice-president and head of its China operations, who spent 14 years at the US chip giant before striking out on his own.\nMany of the company’s early hires also came from Nvidia and Advanced Micro Devices, giving the start-up instant credibility and helping it attract investment from prominent backers such as Shenzhen Capital Group, Sequoia China, GGV Capital, ByteDance and Tencent.\nIn total, it counted nearly 90 shareholders ahead of the IPO, according to its prospectus.\nDespite being added to the US government’s Entity List – the trade blacklist that restricts exports of US technology to specific foreign companies deemed a US national security risk – Moore Threads has rolled out four generations of GPU architecture: Sudi, Chunxiao, Quyuan and Pinghu.\nThe company reported revenue of 438.5 million yuan in 2024, representing a compound annual growth rate of more than 200 per cent over the past three years, alongside a net loss of 1.6 billion yuan.\nIt has yet to turn a profit because of heavy research and development spending and inventory build-ups. In the first half of 2025, revenue rose to 701.8 million yuan, while net losses narrowed to 270.1 million yuan.\n