AI-generated editorial illustration; not a documentary photograph.
Chinese AI chip developer Shanghai Enflame Technology raised 6.12 billion yuan, about $912 million, in its initial public offering. Its shares closed 179% above the offering price on Sept. 11, 2026, giving the company a market capitalization of 171 billion yuan, or about $25.5 billion.
Demand drove a larger retail allocation
Retail demand was unusually strong: orders reached 6,109 times the number of shares initially reserved for individual investors. Enflame expanded that allocation and ultimately sold 43.04 million shares, equal to about 10% of its outstanding stock.
L600 is the current flagship
Founded in 2018, Enflame develops AI processors for data centers and introduced its first accelerator, the DTU 1.0, in 2019. Its latest product, the fourth-generation L600, debuted in July. The chip supports both training and inference and includes 114 gigabytes of memory with bandwidth of 3.6 terabits per second. It uses HBM3 memory; Nvidia’s newer HBM4 technology offers more than twice the bandwidth, according to the source.
Revenue is rising, but losses remain
Enflame reported 2025 revenue of 990.2 million yuan, about $147 million, up 37% from the prior year. The company estimates that revenue reached between 2.3 billion and 3 billion yuan in the first nine months of 2026, more than double the comparable period. Those figures are company estimates, not independently verified results.
Losses narrowed 25% in 2025 to 1.16 billion yuan. Enflame expects to reach profitability in late 2026 or 2027, while its IPO proceeds are earmarked for fifth- and sixth-generation machine-learning accelerators.
Tencent is a major concentration risk
Reuters reported that Tencent accounted for more than 83% of Enflame’s 2025 revenue. Tencent is also the company’s largest shareholder, holding a 17.95% stake after the IPO. That customer and ownership concentration is a significant factor in assessing Enflame’s business exposure.
Source: Chinese AI chip developer Enflame raises $912M in IPO
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