Key facts
- Enflame Technology, a Tencent-backed AI chip startup, has been approved for an IPO on Shanghai's STAR Market.
- The company intends to raise 6 billion yuan ($888 million) through the offering.
- Funds will be used for the development of fifth- and sixth-generation AI chips and related software/hardware projects.
- Tencent is a major shareholder with a 20% stake and was the primary revenue source in 2025.
- Enflame aims to achieve profitability by 2027.
Enflame Technology, an AI chip developer backed by Tencent, has secured approval for its initial public offering on Shanghai's STAR Market. The company aims to raise 6 billion yuan (approximately $888 million) to fund the development and commercialization of its fifth- and sixth-generation AI chips, along with related software and hardware integration projects. Enflame has set a target to achieve profitability by 2027.
The Shanghai-based firm's net loss narrowed to 1.2 billion yuan ($178 million) in 2025 from 1.5 billion yuan ($222 million) the previous year, while its first-half revenue is projected to more than triple year-on-year. Tencent, a significant investor, holds a 20% stake in Enflame and accounted for 84% of its revenue in 2025, up from 38% in 2024.
Enflame's IPO approval positions it as the last among China's 'four little GPU dragons' to go public, following Moore Threads, MetaX Integrated Circuits, and Biren Technology. The company has developed four generations of chip architectures since its establishment in 2018 and offers a product system encompassing AI chips, accelerator cards, intelligent computing systems, and software platforms. State-backed institutions also hold stakes in Enflame.