BUSINESS

Tencent-Backed AI Chipmaker Wins IPO Approval

Published: Jun. 16, 2026 7:28 p.m. GMT+8

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Chinese AI chip startup Enflame Technology has received approval for a listing on Shanghai’s tech-focused STAR Market as it aims to turn a profit by 2027.

The Shanghai-based company plans to raise 6 billion yuan ($835 million) from the planned IPO to fund development and commercialization of its fifth- and sixth-generation AI chips, as well as software and hardware integration projects.

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Chinese AI chip startup Enflame Technology received approval for a Shanghai STAR Market IPO, aiming to raise 6 billion yuan ($835 million).
Tencent holds a 20% stake and contributed 83.8% of Enflame's 2025 sales revenue; net loss narrowed to 1.2 billion yuan in 2025.
Enflame expects to turn a profit by 2027; it held 1.7% of China's AI accelerator card market in 2025.

AI generated, for reference only

Enflame Technology: Enflame Technology, a Chinese AI chip startup, has received approval for a STAR Market IPO to raise 6 billion yuan. It develops AI chips for training and inference, with Tencent as its largest investor and customer. The company expects profitability by 2026-2027 and holds 1.7% of China's AI accelerator card market.

Tencent Holdings Ltd.: Tencent Holdings Ltd. is a major financial backer of Chinese AI chip startup Enflame Technology, having invested 5.1 billion yuan for a 20% stake. It is also Enflame's largest customer, contributing 83.8% of its 2025 sales revenue.

Nvidia Corp.: Based on the article, Nvidia Corp. is a U.S. chip powerhouse that dominates the Chinese AI accelerator card market. In 2025, Chinese startup Enflame Technology held only 1.7% of that market, highlighting Nvidia's leading position.

AI generated, for reference only