Chinese AI chip startup Enflame Technology has set the price for its initial public offering, with sales to Tencent-backed investor and top customer Tencent Holdings more than doubling as a share of revenue in a single year. Once Enflame completes its listing, all four companies known as China's "big four unicorns" in the graphics processing unit industry will have gone public.
Enflame said in a filing that it set the offering price for its listing on the Shanghai Stock Exchange's STAR Market at 142.18 yuan per share, Bloomberg reported on the 31st. The offering covers about 43 million shares, or 10% of the company's expanded share count after listing. The listing will raise 6.12 billion yuan (about 1.25 trillion won).
Tencent holds a 20% stake in the company and is also its largest customer. Sales to Tencent accounted for 84% of Enflame's total revenue in 2025, up sharply from about 38% a year earlier.
Founded in 2018, Enflame is known for AI accelerators used in cloud services and data centers. It is the last of the "big four unicorns" to list, following Moore Threads, Biren Technology and MetaX. The group has drawn strong investor interest. Moore Threads surged 425% on its first day of trading in December last year, fueling expectations for Chinese AI chipmakers.
Tencent's internet and cloud platforms serve as the core commercial base for Enflame's chips, which are used in large data centers to run chatbots, recommendation systems and generative AI. In its prospectus, Enflame said Tencent's demand for AI accelerator cards has far exceeded the company's supply capacity, adding that it has prioritized major customers and used large-scale, high-demand deployments to refine its technology.
The market structure remains dependent on foreign suppliers. Analysts including Feng Wenyu at SWS Research said in a report that China's demand for AI computing power continues to outstrip domestic supply, and that Nvidia accounted for 55% of AI accelerator shipments in China last year, underscoring reliance on foreign chips. Enflame's share is estimated at 1.7%, which puts it among the domestic leaders, they added.
Profitability may still take time. Net loss narrowed to 1.2 billion yuan (about 240 billion won) last year from 1.5 billion yuan (about 305.5 billion won) in 2024, and the company expects a loss of about 600 million yuan (about 120 billion won) in the first half. First-half revenue is projected to more than triple from a year earlier to between 10.6 billion and 11.5 billion yuan (about 2.2 trillion to 2.3 trillion won), following average annual growth of more than 80% from 2023 through 2025.
