The booth of Muxi Co Ltd at the 2025 World Artificial Intelligence Conference in Shanghai on July 29. [Photo/China Daily]

A wave of initial public offerings is sweeping China's graphics processing unit, or GPU sector, marking a critical phase in the nation's push for self-reliance in advanced computing power.

On Jan 22, Shanghai-based Enflame Technology's application to list on Shanghai's Nasdaq-style STAR Market was accepted by the exchange. This move paves the way for "The Four Dragons" — Enflame, Moore Threads, MetaX and Biren Technology — to complete their convergence in the capital markets.

This follows the successful listing of another Shanghai GPU firm, Iluvatar CoreX, on the main board of the Hong Kong stock exchange on Jan 8. It became the second homegrown GPU company to go public in Hong Kong after Biren. Earlier, industry leaders Moore Threads and MetaX had already debuted on the STAR Market to significant investor interest.

The listing momentum which started from late 2025 extends beyond dedicated chip designers. Baidu Inc has announced plans to spin off its non-wholly owned subsidiary Kunlunxin for an independent listing. Informed sources told China Daily that Alibaba Group is also considering a similar spin-off plan for its chip design arm T-Head.

This IPO rush unfolds against a backdrop of stringent US semiconductor export controls and an explosive growth in domestic artificial intelligence applications, thus driving demand for alternative computing solutions.

At a recent news conference, Li Chao, a spokeswoman for the National Development and Reform Commission, highlighted China's deepening "AI+" initiative, which "provides extensive application scenarios for AI computing chips". Li pointed to "rapidly growing demand and vibrant innovation across all types of computing chips", adding that "domestic chip products are accelerating their adaptation across different scenarios with very good results".

The comments acknowledge the sector's vitality while setting higher expectations for its future development. Computing power forms the bedrock of the digital economy, a strategic resource underpinning data flow, algorithm training and intelligent application deployment.

If AI is a lush crop, computing infrastructure is the "fertile black soil" it depends on. As the global computing industry shifts from scale expansion to qualitative leaps, building a secure ecosystem — from underlying chips to applications — has become imperative for China to secure its developmental sovereignty, experts said.

Dong Peng, a senior economist and member of the assets committee of the China Enterprise Confederation, described this listing wave as "a collective breakthrough for domestic computing power during a strategic window of opportunity".

"Beneath the surface heat in capital markets lie two fundamental drivers," Dong said.

"First, the national demand for autonomy and controllability in AI and high-end manufacturing has created an unprecedented dual engine of policy and market support. Second, Washington's export restrictions on US leaders like Nvidia have opened a precious market window for domestic firms."

He emphasized that listing is not merely about fundraising, but a crucial step to establish industry standards and ecosystem influence. "The race to go public is about seizing the advantage in technology iteration, customer lock-in and brand recognition while the competition landscape is still taking shape. This is a battle for survival and, more importantly, for future power."