Chinese AI chip startup Biren Technology has secured about 1.5 billion yuan in fresh funding and is preparing for a Hong Kong initial public offering, Reuters reported Thursday, citing people familiar with the matter.

The funding round was led primarily by state-linked investors, including a provincial fund from Guangdong and another backed by the Shanghai government, the report said.

Biren was valued at roughly 14 billion yuan before the raise, two of the sources told Reuters.

The company had initially filed for a mainland listing last year but has since pivoted to Hong Kong due to stricter regulatory requirements and a lower tolerance for loss-making firms onshore, according to the report.

A filing could come as early as August, one of the sources told Reuters.

Founded in 2019, Biren is considered a key player in China's effort to build domestic GPU alternatives in response to US export restrictions on advanced semiconductors, Reuters reported. Its co-founders include former executives from SenseTime (HKG:0020), Qualcomm, and Huawei.

Despite being placed on the US Entity List in 2023, which cut off access to major foundries such as TSMC, Biren has continued operations. However, it continues to operate at a loss and generates limited revenue, recording 400 million yuan in sales in 2024, Reuters said.

The company has also experienced leadership changes, including the departure of co-founder Xu Lingjie, the report added.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)