Chinese AI Chip Unicorn Enflame Starts IPO Guidance with Tencent as Largest Shareholder

August 27, 2024 (InvestinChina.asia) – Shanghai-based AI chipmaker Enflame Technology has registered for pre-IPO guidance with the local securities regulatory authority, paving the way for its public listing, according to documents filed with the Shanghai Securities Regulatory Bureau. The company has appointed China International Capital Corporation (CICC) as its underwriter for the process.

Enflame, founded in March 2018 by CEO Li Dong Zhao and COO Ya Lin Zhang, specializes in developing AI training and inference solutions, including chips, boards, integrated computing machines, liquid-cooled computing clusters, and supporting software systems.

The company is jointly owned by its founders and a number of prominent investors, including Tencent Technology (Shanghai) Co., Ltd., Li Dong Zhao, Ya Lin Zhang, and the National Integrated Circuit Industry Investment Fund Phase II Co., Ltd. According to records, Tencent holds approximately 20.4944% of Enflame’s shares, making it the largest shareholder, while the National Integrated Circuit Industry Investment Fund Phase II owns 5.2205% and ranks as the fifth-largest shareholder.

Li Dong Zhao and Ya Lin Zhang directly control 32.5087% of Enflame’s voting rights through their personal holdings and via two limited partnerships, Shanghai SuYuan HuiZhi Information Technology Consulting Partnership and Shanghai SuYuan ChongYing Information Technology Consulting Partnership. They have also entered into a joint action agreement, with Li serving as CEO and Ya as COO.

Enflame has a close relationship with Tencent, which previously launched its AI inference chip “Zixiao” in collaboration with Enflame. Additionally, Enflame has partnered with listed company Hongxin Electronics to develop a domestic computing platform suitable for artificial intelligence applications and training.

Enflame’s product lineup includes the Suisi series of chips, CloudSui training and inference acceleration cards, and CloudSui computing machines. Its offerings provide computational support to internet companies, cloud service providers, network operators, research institutions, and regional computing centers.

Enflame has not yet disclosed details regarding the specific stock exchange where it plans to list.