China's AI dragons breathe fire on Nvidia's moat

Shanghai Enflame Technology drew retail investor orders worth 6,109 times the shares available for its Shanghai initial public offering, according to an exchange filing published on September 2.

The company is raising 6.1 billion yuan ($908 million) after setting its IPO price at 142.18 yuan per share on August 31. It values the company, which is yet to make a profit, at 61 billion yuan ($9.1 billion), or 61.8 times its 2025 sales.

Enflame specialises in chips used for AI inference, which refers to the process in which a trained model generates responses or outputs. It is one of China's leading AI chip startups, referred to as the "four little dragons". The other three — Moore Threads Technology, MetaX Integrated Circuits and Shanghai Biren Technology — all went public over the last year.

IPO-bound Enflame's 1400% quarterly revenue growth highlights the progress China's chipmaking upstarts are making against Nvidia. By developing their own software and easing migration from the US titan's products, they are steadily eroding its hold on a $9 bln market.

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