China's Biren Raises $892M to Build GPUs That Can Take on Nvidia at Home
Shanghai Biren Technology is selling HK$7 billion (about $892.5 million) of new shares to boost GPU production, according to the South China Morning Post. This move comes amid US export controls that restrict Nvidia from selling its most powerful chips in China, creating a rare opening for domestic rivals.
July 6, 2026 - 10:17 am
Nvidia faces challenges in selling its top-tier chips within China, prompting a race among local challengers to fill the gap. Biren aims to capitalize on this opportunity by increasing GPU production, catering to China's cloud and data center buyers who continue to invest despite the current economic climate.
Funding Details:
Biren plans to issue 153 million new shares at HK$46.2 each, representing a 9.9% discount from Friday's close. The company went public in Hong Kong in January, and its stock has since surged nearly 150%. Despite cautious investor sentiment, the share price rose initially on Monday before closing 5.4% lower.
Investment Allocation:
- 60% for commercializing and mass producing next-generation general-purpose GPUs.
- 20% dedicated to research.
- The remaining 20% will be allocated to investments and working capital.
This aggressive raise reflects Biren's ambition, especially considering they have already spent more than 70% of their listing proceeds by the end of June.
Timing and Market Opportunity:
The timing is strategic, as Washington's export controls prevent Nvidia from supplying its most advanced AI chips to Chinese customers. This has created a significant market gap that Biren aims to fill. They compete with companies like Moore Threads, MetaX, and Cambricon, all vying for the same customer base.
Biren emphasizes the strong demand for AI computing deployments among cloud service providers, AI data centers, and enterprise customers in China.
A Crowded Race:
The race to capture this market is intense, with several Chinese companies seeking funding through IPOs or other means. MetaX, another Nvidia competitor, announced its intention to list in Hong Kong in June, following its debut on Shanghai's STAR Market earlier. Baidu's chip unit, Kunlunxin, aims for a valuation of at least 100 billion yuan ($14.7 billion) in its planned Hong Kong float.
While Biren may not yet be on par with Nvidia, the opportunity to provide "good enough" and "made in China" GPUs is substantial, worth nearly $900 million in fresh capital.