Biren Technology, a Chinese AI GPU developer that rivals Nvidia, has hired an investment bank to prepare itself for an initial public offering (IPO), reports South China Morning Post. Biren, valued at $2.19 billion last November, has been looking forward to an IPO for more than a year now, and it seems like the company is finally making steps toward this milestone.

Biren Technology has taken the first step toward an IPO by hiring Guotai Junan Securities to guide them through the necessary IPO preparation stage, which is required for all firms in China before listing. This 'tutoring' process typically takes anywhere from three to twelve months. Neither Biren nor the China Securities Regulatory Commission (CSRC) has shared details on where the IPO will occur or the expected fundraising target.

This IPO move follows a similar step by Biren's competitor, Enflame. Both companies work to secure capital from public markets while attempting to capitalize on the growing int erest in homegrown technology in China. Specifically, Biren seeks to fill the void left by Nvidia and AMD, whose most advanced chips are blocked from being sold to Chinese entities due to U.S. export restrictions.

Meanwhile, Biren is blacklisted by the U.S. Commerce Department, which made it impossible for the company to produce its BR100/BR200 GPUs (i.e., these GPUs for AI cannot be made by TSMC unless the U.S. government grants the foundry an export license) and develop new products (unless the U.S. gov't grants another export license to companies that produce electronic design automation tools). As a result, the company had to develop simplified BR106, BR106C (cards), and BR106M (module) products that are allegedly not made by TSMC (i.e., most likely produced by SMIC). Interestingly, Biren no longer shares performance numbers for these parts.

According to Pitchbook, Biren Technology was valued at $2.19 billion in November 2023. Over its development, the start-up has raised over $780 million across eight funding rounds. One of its key investors is the venture capital firm HongShan, formerly known as Sequoia China.

The growth of China's semiconductor industry has produced numerous unicorns in recent years, although concerns have been raised about the tech sector's reliance on state-backed investments.