Chinese AI chipmaker Moore Threads Intelligent Technology (Beijing) Co. Ltd. has won speedy approval for a STAR Market initial public offering (IPO), clearing the way for a major fundraising despite deep losses and US sanctions, reports Caixin. The Shanghai Stock Exchange’s listing committee cleared the IPO on Friday, less than three months after receiving the firm’s application. The company, founded by a former Nvidia Corp. executive, aims to raise RMB 8 billion ($1.1 billion) to fund research and development and shore up working capital, according to its prospectus.
The fast-track greenlight underscores Beijing’s urgency to build a self-sufficient semiconductor industry, particularly in AI, as US restrictions tighten. Moore Threads illustrates a broader trend among sanctioned Chinese chipmakers: leaning on large-scale computing clusters to offset weaker single-chip performance while burning cash on an uphill path to profitability.
Founded in October 2020, Moore Threads grew revenue from RMB 45.8 million in 2022 to RMB 432 million in 2024. However, its net losses have been severe, totaling RMB 4.61 billion over the same period after deducting nonrecurring items. The company’s R&D spending from 2022 to 2024 reached RMB 3.8 billion—more than six times its cumulative revenue.