en.Wedoany.com Reported - Shanghai Biren Technology Co., Ltd. has raised funds by issuing new shares worth HK$7 billion (approximately $892.5 million) to increase production capacity for general-purpose GPUs. According to a report by the South China Morning Post, this move bets on continued investment from Chinese cloud and data center buyers. The company plans to allocate 60% of the funds to the commercialization and mass production of next-generation general-purpose GPUs, 20% to research and development, and the remainder to investments and working capital.

The issuance price was HK$46.2 per share, with a total of 153 million new shares issued, representing a 9.9% discount from last Friday's closing price. Biren Technology, which listed on the Hong Kong Stock Exchange in January, has seen its share price rise by nearly 150% cumulatively. Following the announcement, the company's shares rose in early trading on Monday before closing down 5.4%. As of the end of June, Biren Technology had used over 70% of its IPO proceeds, indicating a relatively fast pace of capital consumption.

U.S. export controls have restricted Nvidia's most advanced AI chips from entering the Chinese market, opening up market opportunities for domestic GPU manufacturers. Biren Technology competes for the same customer base with companies such as Moore Threads, MetaX, and Cambricon. The company stated that cloud service providers, AI data centers, and enterprise customers are significantly expanding their AI computing deployments, and this financing aims to provide sufficient funds to scale up production of next-generation GPUs to fulfill orders on time.

Capital is flowing into this rapidly developing sector. MetaX, also based in Shanghai, said in June it would seek a Hong Kong listing, just months after its IPO on the STAR Market. Baidu's chip subsidiary Kunlunxin is also reportedly planning a Hong Kong listing, with a valuation of at least 100 billion yuan (approximately $14.7 billion). Biren Technology's products still lag behind market leaders, as China's most powerful AI accelerators often come from custom designs by companies like Huawei rather than general-purpose GPUs. However, amid restricted overseas supply, "good enough" and "Made in China" GPU products still hold commercial value, and the nearly $900 million in new capital reflects this trend.