Cambricon Raises $560 Million in Fresh Capital for AI Chip Development
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Chinese AI chip designer Cambricon Technologies Corp. Ltd. (688256.SH) has completed a nearly 4 billion yuan ($562 million) private placement, its second since going public, to fund the development of its AI chips.
The fundraising underscores the immense pressure on Cambricon to scale up. As U.S. sanctions restrict the sale of high-end Nvidia Corp. chips to China, Cambricon has become a key player in the country’s drive for AI self-sufficiency. This has fueled huge investor optimism and massive orders from domestic tech giants, but has also exposed the firm’s significant production bottlenecks and sent its valuation to levels it has itself called risky.
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- Cambricon Technologies raised nearly 4 billion yuan ($562M) via private placement to fund AI chip and software development amid US chip sanctions.
- Revenue grew thirteenfold to 1.7 billion yuan in Q3 2025, but chip production lags demand—ByteDance’s preorder alone exceeds projected yearly shipments.
- Cambricon's stock rose over fivefold in a year; market cap peaked at 664.3 billion yuan, but the company warns its valuation may be unsustainable.
- Cambricon Technologies Corp. Ltd.
- Cambricon Technologies Corp. Ltd. (688256.SH) is a Chinese AI chip designer. It recently completed a 4 billion yuan private placement to fund AI chip development, crucial for China's AI self-sufficiency amid U.S. sanctions. Despite significant growth and investor optimism, the company faces production bottlenecks and has warned about its high valuation. Its products are reportedly used by ByteDance, among others, though it struggles to meet demand.
- Nvidia Corp.
- Nvidia Corp. is mentioned in the context of US sanctions restricting the sale of its high-end chips to China. This has positioned Cambricon as a key player in China's pursuit of AI self-sufficiency.
- GF Fund Management Co. Ltd.
- GF Fund Management Co. Ltd. was the leading subscriber in Cambricon Technologies Corp. Ltd.'s private placement, investing 1.2 billion yuan. This investment contributes to Cambricon's efforts in developing AI chips and software for large AI models.
- UBS AG
- UBS AG was one of the investors in Cambricon Technologies Corp. Ltd.'s private placement. Cambricon Technologies, a Chinese AI chip designer, raised nearly 4 billion yuan ($562 million) to fund the development of its AI chips.
- New China Asset Management Co. Ltd.
- 新华资产管理股份有限公司 (New China Asset Management Co. Ltd.) was an investor in Cambricon Technologies Corp. Ltd.'s private placement. They were among the institutional investors who participated in the fundraising, which aimed to secure nearly 4 billion yuan to fund the development of AI chips.
- ByteDance Ltd.
- ByteDance Ltd. is identified as Cambricon's largest internet client, having preordered 200,000 chips. Due to production bottlenecks at Cambricon, their maximum chip shipments for 2025 are estimated at around 80,000 units, which may not satisfy ByteDance's demand.
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