Moore Threads and MetaX aim to raise funds on Shanghai’s STAR Market as China ramps up domestic GPU development
Two Chinese artificial intelligence (AI) chip startups, Moore Threads and MetaX, are preparing to raise a combined 12 billion yuan ($1.65 billion) through initial public offerings (IPOs) on Shanghai’s STAR Market. The filings come as U.S. export restrictions on advanced chips drive increased domestic demand in China’s rapidly evolving semiconductor sector.
China’s AI Chip Firms Eye IPOs to Fuel Growth
- Moore Threads, based in Beijing, plans to raise 8 billion yuan.
- MetaX, based in Shanghai, aims to secure 3.9 billion yuan.
Both IPOs are set to take place on Shanghai’s STAR Market, a technology-focused stock exchange designed to support innovative enterprises. The companies are betting on Beijing’s push for chip self-sufficiency, especially in graphics processing units (GPUs) critical for AI development.
U.S. Sanctions Fuel China’s Domestic Chip Ambitions
The IPO plans come at a time of heightened tension between the U.S. and China over access to advanced chips. In April 2025, the U.S. banned Nvidia’s H20 GPU exports to China, extending a series of sanctions that also restrict Chinese AI chipmakers from using top-tier global foundries like TSMC.
In response, Chinese firms are accelerating efforts to develop local alternatives. Moore Threads and MetaX both noted in their filings that U.S. export controls pose risks but also create market opportunities by encouraging domestic substitution. “U.S. restrictions on high-end GPU exports to China are prompting Chinese companies to accelerate domestic substitution processes,” Moore Threads stated. MetaX added that “geopolitical pressures are forcing domestic clients to adopt locally produced GPUs,” which strengthens ties between domestic suppliers and buyers.
Financial Performance: Heavy Losses, High Hopes
Despite their strategic positions, both chip startups are operating at significant losses due to high R&D investments.
| Company | 2024 Revenue | 2024 Loss | 2023 Loss | 2022 Loss |
|---|---|---|---|---|
| Moore Threads | ¥438 million | ¥1.49 billion | ¥1.67 billion | ¥1.84 billion |
| MetaX | ¥743 million | ¥1.4 billion | ¥871 million | ¥777 million |
Analysts say the IPO proceeds will be crucial for continued research and development as the companies strive to produce competitive GPUs.
“Accessing the capital market is critical for Moore Threads and MetaX to continue innovating,” said He Hui, semiconductor research director at Omdia.
Founders with U.S. Chipmaker Backgrounds
Both companies were founded in 2020 by former executives from major U.S. chip firms:
- Moore Threads was established by ex-NVIDIA China GM Zhang Jianzhong.
- MetaX was founded by former AMD executives, including Chen Weiliang, who led AMD’s global GPU product line design.
Their backgrounds lend credibility and experience as China pushes to create homegrown chip champions.
A Competitive and Growing AI Chip Ecosystem
Moore Threads and MetaX face stiff competition from Chinese GPU and AI chip players, including Huawei, Cambricon, Hygon, and several other startups. Despite the losses, both companies are considered leaders in China’s domestic GPU development, and their IPOs could mark a turning point in the country’s bid to reduce reliance on foreign semiconductor technology.
Key Takeaways
- Moore Threads and MetaX are raising a combined $1.65 billion via IPOs on Shanghai’s STAR Market.
- The move follows tightening U.S. export curbs on advanced chips like Nvidia’s H20 GPU.
- Both firms cite U.S. sanctions as both a risk and an opportunity for domestic growth.
- Founded by ex-NVIDIA and AMD leaders, the companies are investing heavily in R&D.
- China’s drive for chip independence is creating new momentum in the GPU sector.
