Shanghai Biren Technology, a Chinese AI chipmaker, is raising approximately HK$7 billion ($892.5 million) to ramp up production of its graphics processing units. The move positions the firm in an intensifying domestic battle to seize market share from Nvidia as AI demand surges.
The company went public in Hong Kong in January and has seen its stock surge more than 150% since its IPO. Biren's capital raise comes as Beijing encourages homegrown alternatives to US chip technology amid export restrictions.
Biren will issue 153 million new shares at HK$46.2 each, a 9.9% discount to the stock's last closing price of HK$51.3. The funds are earmarked specifically to boost GPU production capacity, according to the company's announcement.
The offering aims to help Biren compete against Nvidia, which dominates the global GPU market but faces growing curbs on selling advanced chips to China. Other Chinese chipmakers are also racing to fill the gap left by US sanctions.
Analysts note the deal's success hinges on Biren's ability to deliver competitive performance at scale, a challenge given Nvidia's entrenched software ecosystem and manufacturing advantages.