Moore Threads Technology, a Beijing-based AI chipmaker, has made headlines as its shares surged over 420% in a spectacular debut on the Shanghai Stock Exchange. The company, often dubbed China’s potential answer to Nvidia, has propelled founder and CEO Hang Jianzhong into billionaire status, with an estimated net worth of $4.3 billion. Co-founders Wang Dong and Zhang Yubo also joined the ranks of the ultra-wealthy.
The IPO, one of China’s most anticipated this year, raised 8 billion yuan ($1.1 billion) and was oversubscribed by 2,750 times, reflecting intense investor demand. Positioned at the forefront of China’s drive for technology self-reliance, Moore Threads is set to expand research, development, and production in the rapidly growing domestic AI chip market.
Read More: Senior U.S. Diplomat Criticizes EU Policies as Detrimental to Transatlantic Partnership
Moore Threads’ Meteoric Rise
The 59-year-old executive’s stake in Moore Threads is now worth approximately $4.3 billion, according to Forbes estimates. Co-founders Wang Dong and Zhang Yubo have also become billionaires, with fortunes of $1.4 billion and $1.7 billion, respectively.
Moore Threads raised 8 billion yuan ($1.1 billion) in late November through an initial public offering (IPO), selling 70 million shares at 114.28 yuan each. The IPO quickly became one of China’s most anticipated this year, with retail demand oversubscribed by 2,750 times, even after a clawback mechanism redistributed shares to individual investors. Following the listing, the company’s market capitalization reached 276 billion yuan. Proceeds are earmarked for research and development and expanding the workforce.
Backing From Leading Investors
Before going public, Moore Threads secured funding from prominent investors, including HongShan Capital Group (formerly Sequoia China), and the investment arms of Chinese tech giants ByteDance and Tencent. However, in 2023, the company was added to the U.S. government’s entity list, restricting access to advanced American chipmaking technology.
Riding China’s Push for Tech Self-Reliance
Analysts say Moore Threads benefits from China’s drive for technology independence amid U.S. restrictions on semiconductor exports. “Domestic AI chipmakers are gaining attention as China seeks self-reliance in critical technology,”
Said Kenny Ng, a Hong Kong-based securities strategist at Everbright Securities International. Similar optimism has boosted other companies, such as Cambricon Technologies, whose CEO Chen Tianshi is now China’s 11th richest person, with a net worth of $23.4 billion.
Products and Market Outlook
Moore Threads produces graphics processing units (GPUs) and supporting software for AI model training. The domestic GPU market is projected to grow from 142.5 billion yuan in 2024 to 1.3 trillion yuan by 2029, according to a research note by Shanghai-based brokerage Sinolink Securities.
The brokerage described Moore Threads as poised to become a “key player” in replacing foreign suppliers like Nvidia. Financially, Moore Threads reported sales of 784.6 million yuan in the first nine months of this year, up 182% from the same period last year. Losses narrowed to 723.5 million yuan, a decline of 18.7% year-on-year.
Leadership and Experience
Founder Zhang Yubo brings nearly two decades of semiconductor experience. He led Nvidia’s China unit for 14 years before founding Moore Threads in 2020 and previously held senior roles at Dell and HP in China.
His wife, Liu Shanshan, served as a company director in the early years before stepping down in 2023. Moore Threads’ IPO marks a significant milestone for China’s domestic AI chip industry, highlighting both investor enthusiasm and the country’s strategic push toward self-reliance in high-tech manufacturing.
Frequently Asked Questions
Who is Moore Threads?
Moore Threads Technology is a Beijing-based AI chipmaker that develops graphics processing units (GPUs) and supporting software for AI model training. It aims to compete with international players like Nvidia in the domestic market.
Who founded Moore Threads?
The company was founded in 2020 by Zhang Yubo, a veteran of the semiconductor industry who previously led Nvidia’s China unit for 14 years and held senior roles at Dell and HP in China. Hang Jianzhong serves as chairman and CEO.
How successful was Moore Threads’ IPO?
The company raised 8 billion yuan ($1.1 billion) in its Shanghai IPO, selling 70 million shares at 114.28 yuan each. Shares surged over 420% on debut, resulting in a market capitalization of 276 billion yuan. Retail demand for the IPO was oversubscribed by 2,750 times.
How much are the founders worth?
Hang Jianzhong’s stake is valued at approximately $4.3 billion. Co-founders Wang Dong and Zhang Yubo have fortunes of $1.4 billion and $1.7 billion, respectively.
Who invested in Moore Threads before its IPO?
Early investors include HongShan Capital Group (formerly Sequoia China) and the investment arms of ByteDance and Tencent.
Why is Moore’s Law significant for China?
The company aligns with China’s push for technology self-reliance, especially in AI and semiconductors. Its products could reduce dependence on foreign suppliers like Nvidia amid ongoing U.S. trade restrictions.
Conclusion
Moore Threads’ spectacular debut on the Shanghai Stock Exchange underscores the rising momentum of China’s domestic AI chip industry. With its founders joining the ranks of billionaires and a market capitalization exceeding 276 billion yuan, the company exemplifies both investor confidence and the strategic push for technology self-reliance.
