Funding and commercialization within the large language model sector are accelerating significantly.

On May 8, it was learned from sources that StepFun Celestial is set to complete a funding round of nearly $2.5 billion (approximately RMB 17.006 billion) and is accelerating its listing process. It may become another domestic large model company, alongside Zhipu AI and MiniMax, to pursue a listing in Hong Kong. Similarly, recent media reports indicate that Moonshot AI is also close to finalizing a $2 billion funding round.

According to individuals familiar with the transaction, a notable feature of StepFun's new funding is the concentrated participation of industrial chain capital. Beyond financial investors, multiple companies from the mobile phone and consumer electronics supply chain, including Huaqin, Longcheer, Omnivision, and ZTE, have taken part, covering various segments from whole-unit manufacturing to upstream core components.

Among them, Huaqin and Longcheer are first-tier global mobile phone ODM enterprises, providing whole-unit R&D, design, and manufacturing services. Omnivision is an image sensor supplier, positioned upstream in key components like mobile phone cameras. ZTE's mobile phone division has previously engaged in deep co-creation with StepFun on AI phone features, which have been mass-produced and implemented in several flagship models, including the Nubia Z80 Ultra.

The entry of industrial capital reflects the definitive trend of model capabilities migrating to the device side. Over the past year, hardware manufacturers of devices like mobile phones, PCs, and wearables have been actively seeking paths to productize AI, while model companies are competing for user access points. Market information suggests OpenAI is accelerating the development of its first AI Agent phone, with mass production potentially starting in the first half of 2027. Against this backdrop, capital alignment signifies deeper integration of technology, application scenarios, and the supply chain.

In terms of its commercialization path, StepFun has chosen this strategy of a "breakthrough from the device side," partnering with manufacturers of mobile phones, automobiles, and others. The characteristics of this type of revenue are steady growth and respectable profit margins, with scaling dependent on the shipment volumes of partners.

The company's Chief Strategy Officer previously stated that its revenue model is not a simple SaaS subscription but a combination of "device + cloud": licensing fees are charged for the device side, while usage-based billing applies to the cloud side. This model is already sustainable at the current stage, and future maturation of business models like autonomous driving subscriptions is expected to create additional monetization pathways.

The involvement of Yin Qi introduces another variable. Previously, Yin Qi, co-founder of Megvii and Chairman of QL Technology, officially assumed the role of Chairman at StepFun Celestial, forming a new core management team with CEO Jiang Daxin, Chief Scientist Zhang Xiangyu, and CTO Zhu Yibo. When he founded Megvii, his ambition extended beyond just algorithms to creating integrated software-hardware solutions. While challenging at the time, this experience could now serve as a differentiating advantage for StepFun at the dawn of the AI device era.

Simultaneously, StepFun's capital structure is being prepared for the public listing. Industrial and commercial information shows the company completed a conversion from a limited liability company to a joint stock company in April. Informed sources indicate its Red Chip structure has also been dismantled, a step typically seen as a key precursor to a Hong Kong IPO.

A less frequently mentioned but significant factor is the investment by the Hong Kong Investment Corporation (HKIC), often referred to as the "Hong Kong version of Temasek." As an investment platform established by the Hong Kong SAR Government, HKIC has currently placed its sole bet in the large model sector on StepFun. Its investment provides further endorsement for StepFun's planned Hong Kong listing.

With the funding secured, structural adjustments completed, and industrial capital on board, StepFun's journey towards an IPO is gaining momentum.