ENFLAME Technology, one of China’s leading cloud graphics processing unit (GPU) makers, was listed on the STAR Market on Friday, completing the lineup of China’s four major artificial intelligence (AI) GPU computing chip companies — known as the “four little dragons” — on the capital market. The group also includes Moore Threads, MetaX and Biren.
Industry observers said that the listings signaled that competition in China’s AI GPU chip sector will focus on systematic capabilities — large-scale delivery for major computing clusters, full-stack hardware-software efficiency, rapid product development, and building exclusive advantages in specific industries and scenarios.Enflame’s initial public offering (IPO) was priced at 142.18 yuan ($21.20) per share, with 43.04 million shares issued. The company raised a total of 6.119 billion yuan through the IPO, giving it a market valuation of 61.19 billion yuan. Proceeds will be invested in the research, development (R&D) and industrialization of its fifth- and sixth-generation AI chips, according to the company’s IPO prospectus.Founded eight years ago, Enflame is one of China’s leading cloud GPU makers focused on independent research and development of cloud AI chips. It has developed four generations of architecture and launched five cloud AI chips, building a complete product system covering AI chips, accelerator cards and modules, intelligent computing clusters and supporting software platforms.Zhao Lidong, chairman of Enflame Technology, said that the company’s first-generation products are still used in a 1,000-GPU card cluster at the Zhejiang Lab for scientific computing. The second-generation chips have been shipped to Tencent, totaling about 30,000 units. The third generation, currently in mass production, has reached cumulative shipments of 160,000 units, while the upcoming fourth generation is expected to see further growth of sales.Enflame’s revenue reached 301 million yuan in 2023, 722 million yuan in 2024 and 990 million yuan in 2025, with a three-year compound annual growth rate of 81.32 percent. In the first half of 2026, business revenue hit 1.12 billion yuan. The company expects revenue for the first nine months of 2026 to range between 2.3 billion and 3 billion yuan, up 325.78 to 455.36 percent year on year.“Amid a rising AI computing power supply-demand gap at home and rigid demand for localization, the ‘four little dragons’ have entered a phase of high growth, although many of the manufacturers remain in the red,” Wang Peng, an associate research fellow at the Beijing Academy of Social Sciences, told the Global Times on Sunday.Wang said that competition among the four manufacturers will be fierce: large-scale delivery capability to support major intelligent computing clusters, efficiency of full-stack hardware-software adaptation, fast annual upgrades of product speed and the ability to build exclusive advantages in specific industries and computing scenarios.“Only companies that can connect R&D investment, product performance, software ecosystem and customer orders into a continuously profitable commercial chain can build a firm foothold in the industry,” Yang Delong, chief economist at Shenzhen-based First Seafront Fund, told the Global Times on Sunday.
