Core Viewpoint - The emergence of the "Four Little Dragons" of domestic GPUs—Mole Thread, Muxi Technology, Bilan Technology, and Tensu Zhixin—marks a significant moment in the capital market, raising questions about their sustainable growth amidst international competition [1][8]. Group 1: Company Profiles and Strategies - Mole Thread, with a team rooted in Nvidia, emphasizes ecosystem compatibility and parallel development of graphics rendering and AI computing, utilizing its self-developed MUSA architecture [2][3]. - Muxi Technology and Tensu Zhixin adopt a pragmatic approach similar to AMD, focusing on high-performance parallel computing while sacrificing complex graphics rendering capabilities [2][3]. - Bilan Technology stands out with its original architecture and Chiplet technology, aiming for extreme computing performance and flexibility in product offerings [3][4]. Group 2: Market Position and Performance - The "Four Little Dragons" have begun to establish their presence in various sectors, with Bilan achieving commercial success in heterogeneous training solutions, Mole Thread securing large-scale delivery contracts, Muxi reporting significant orders, and Tensu being the first to achieve mass production of 7nm GPGPU [7][8]. - The competitive landscape is characterized by overlapping targets among the four companies, particularly in securing contracts from major internet firms and local government data centers [15][16]. Group 3: Financial Insights and Challenges - All four companies exhibit high growth accompanied by significant losses, with R&D expenses consuming a large portion of their revenues, particularly for Muxi and Tensu [19][20]. - The R&D expenditure for 2024 shows that Mole Thread has 886 R&D personnel with a rate of 309.88%, while Muxi has 706 personnel with a rate of 121.24% [21]. - The timeline for achieving profitability is projected around 2026-2027, mirroring Nvidia's early growth trajectory [22]. Group 4: Ecosystem and Market Dynamics - The competition extends beyond hardware performance to include software ecosystems, with each company developing its own software stack to attract developers and enhance product value [23][24]. - The ability to expand customer bases and maintain high repurchase rates will be crucial for validating the true value of their products in a market increasingly driven by performance and cost [24][25]. - The stability of supply chains is critical, as the GPU industry is interconnected with various sectors, and any disruptions could significantly impact production and market presence [25].

Core Viewpoint - The article highlights the significant milestone of domestic GPU company Muxi's IPO, reflecting the ambition and challenges of China's semiconductor industry in overcoming the "bottleneck" of computing power [6][9][36]. Company Overview - Muxi, founded in 2020 by three former AMD scientists, has rapidly evolved from a small office in Shanghai to a company with nearly 900 employees, successfully developing high-performance GPU chips [8][11]. - The company has launched several products, including the Xisi N100 and the Xiyun C500, which have become key revenue drivers, with the latter generating 7.22 billion yuan in 2024, accounting for 97.28% of its main business revenue [15][16]. Financial Performance - Muxi has not yet achieved profitability, with cumulative losses exceeding 3.2 billion yuan since its inception. The company anticipates reaching breakeven by 2026 [16][25]. - The revenue figures from 2022 to 2025 show a significant increase, with projected revenues of 42.64 million yuan in 2022, 530.21 million yuan in 2023, and 7.4 billion yuan in 2024 [16]. Market Context - The domestic GPU market is experiencing explosive growth, with the market size expected to increase from approximately 14.29 billion yuan in 2020 to around 99.67 billion yuan in 2024 [36]. - The shift in procurement logic among industry clients has transformed domestic GPUs from optional to essential solutions, emphasizing the importance of usability and ecosystem maturity [36]. Investment Landscape - Muxi has attracted over 120 investors through multiple funding rounds, including prominent venture capital firms and state-owned funds, reflecting strong market confidence in its potential [20][22]. - The company completed its final pre-IPO funding round, raising over 7.2 billion yuan, leading to a post-investment valuation of 21.07 billion yuan [23][24]. Competitive Landscape - The article outlines three critical challenges for domestic GPU companies: architecture, cluster deployment, and time to market, emphasizing that success requires not just producing chips but also creating a robust ecosystem [29][30][31]. - The competition in the AI era is shifting from chip specifications to the effectiveness of large-scale deployments and operational stability [31][36]. Future Outlook - Muxi's IPO is seen as a starting point for a longer journey, with high expectations for continued technological leadership and market share growth [25][33]. - The company currently holds orders worth 1.43 billion yuan and is actively pursuing key clients in the internet and telecommunications sectors [25].

Core Viewpoint - The article highlights the significant market enthusiasm surrounding domestic GPU companies, particularly focusing on the successful IPO of Moer Thread and the subsequent interest in Muxi Co., which is positioned as the "second domestic GPU stock" [4][5][9]. Group 1: Market Performance - Moer Thread, the first domestic GPU stock, debuted at an issue price of 114.28 yuan per share and opened at 650 yuan, peaking at 688 yuan, resulting in a market capitalization of approximately 2700 to 3000 billion yuan [4][5]. - Muxi Co. launched its IPO on the same day with an issue price of 104.66 yuan per share, aiming to raise 4.197 billion yuan, which would give it a market capitalization of around 418.74 billion yuan [5][9]. - Muxi's offline subscription saw a staggering 2227.6 times oversubscription, surpassing Moer Thread's previous record of 1572 times, marking it as the "king of new share subscriptions" [9][10]. Group 2: Investor Sentiment - The excitement from Moer Thread's IPO translated seamlessly to Muxi, with retail investors expressing a strong desire to participate in the latter's offering, driven by the potential for significant profits [6][7][12]. - Social media discussions reflected a prevalent "lottery mentality" among retail investors, focusing more on potential profits rather than understanding the underlying technology [6][12]. Group 3: Company Background and Financials - Muxi Co., established in September 2020, has a founding team with experience from leading chip companies like AMD and ARM, and has developed a product line that includes GPUs for general computing and AI applications [14]. - The company reported revenues of 42.64 million yuan in 2022, projected to grow to 743 million yuan by 2024, indicating a rapid growth trajectory [14]. - Despite revenue growth, Muxi has faced significant losses, with net losses of 7.77 billion yuan in 2022 and an expected continuation of losses into 2025, highlighting the challenges of high R&D costs [15][22]. Group 4: Investment Landscape - Muxi has attracted substantial investment, with total financing exceeding 10 billion yuan, supported by a diverse range of investors including state-owned funds and private equity [16][17]. - The company's shareholder structure reflects a mix of domestic and international capital, indicating strong backing but also potential pressure from early investors looking to realize gains [18]. Group 5: Future Considerations - The article emphasizes the need for Muxi to establish a sustainable business model beyond project-based revenues, aiming for recurring income streams from cloud services and software licensing [24]. - The success of Muxi will depend on its ability to validate its technology, secure long-term contracts, and maintain investor confidence amidst market volatility [23][26].

Core Viewpoint - The article discusses the imminent IPOs of several domestic AI chip companies in China, likening them to "China's Nvidia," and highlights the intense competition and challenges they face in the market as they seek to establish themselves and secure funding for growth [4][5][6]. Group 1: IPO Challenges - Domestic chip companies are under pressure as they approach their IPOs, facing scrutiny from investors and the media regarding their progress [5][10]. - The IPO process is seen as a critical step for these companies to secure funding, but it also leads to increased competition in the market [5][16]. - The need for continuous external funding is emphasized, as these companies have not yet achieved a self-sustaining revenue-research cycle [15][16]. Group 2: Investment Landscape - There is a shift in investment dynamics, with a noted increase in activity from domestic funds compared to foreign dollar funds, which are retreating [11]. - The potential for high returns from investing in these IPOs is highlighted, with investors expressing regret over missed opportunities in the past [10][11]. - The article notes that the IPOs of these companies could lead to significant wealth creation for investors and employees, although the realization of this wealth may take time [27]. Group 3: Market Dynamics - The article points out that the current market environment is favorable for new IPOs, particularly in the AI chip sector, as investor sentiment is high [29]. - The competition is not only among domestic companies but also against established players like Nvidia, which is facing challenges in the Chinese market [31][33]. - The demand for AI computing power is surging, creating opportunities for domestic companies to capture market share previously held by foreign firms [36][38]. Group 4: Future Prospects - The growth of AI inference is expected to provide a significant boost to domestic chip companies, as the demand for computing power continues to rise [36][38]. - The article emphasizes the importance of product performance and market acceptance for the success of these companies in the competitive landscape [40][41]. - The need for effective marketing and sales strategies is highlighted as crucial for these companies to establish a foothold in the market [42][44].

Investment Rating - The report indicates a strong investment outlook for the domestic GPU industry, particularly highlighting the leadership of Mu Xi in the general-purpose GPU sector [3]. Core Insights - The GPU market in China is expected to grow significantly, with an estimated market size of approximately 1,000 billion yuan for GPUs and 425 billion yuan for other AI chips by 2024 [3][8]. - Domestic internet giants are increasing capital expenditures, with Alibaba planning to invest over 380 billion yuan in AI computing centers and data centers over the next three years [3][10]. - Mu Xi is positioned as a leading domestic high-performance general-purpose GPU company, with a self-developed architecture that is compatible with CUDA [3][18]. Summary by Sections 1. GPU Industry - The GPU industry is gradually establishing a domestic computing and AI model ecosystem, with significant growth in the market size of accelerated chips [4][9]. - By 2024, the domestic accelerated chip market is projected to exceed 270 million units, with local brands accounting for over 82 million units shipped [3][8]. 2. Mu Xi Co., Ltd. - Mu Xi has developed a comprehensive product matrix covering AI computing, general computing, and graphics rendering, with notable products including the Xi Yun C500 and C550 series GPUs [3][38]. - The company has achieved a revenue CAGR of 4075% from 2022 to 2024, with 2024 revenue reaching 743 million yuan [31][35]. - Mu Xi's team comprises industry veterans with backgrounds from AMD, enhancing its technological capabilities [27][30]. 3. Key Investment Targets - The report identifies several key investment targets in the GPU sector, including Cambrian, Haiguang Information, and Mu Xi itself, as well as advanced process-related companies like SMIC and Hua Hong Semiconductor [3][5].

Core Viewpoint - The article discusses the recent response from Muxi Co., Ltd. regarding the inquiry letter for its initial public offering and listing on the Sci-Tech Innovation Board, focusing on its product offerings, market competition, and financial performance. Product and Market Competition - Muxi's products are categorized into training and inference integrated series (GPU boards, GPU servers), intelligent computing inference series (GPU boards), IP licensing, and others, with significant revenue fluctuations across different product types [1][3] - The company has delivered nine intelligent computing clusters, catering to various customer needs, including integrated servers and workstations [1] - The global GPU market is dominated by Nvidia and AMD, with domestic competitors including Huawei HiSilicon, Suiruan Technology, and Kunlun Core, which focus on specialized computing architecture [1] - Muxi's competitive position against international and domestic leaders is not sufficiently detailed in the prospectus [1] Financial Performance and Product Structure - Muxi's revenue from the training and inference integrated series has significantly increased, with the revenue share rising from 30.09% in 2023 to 97.87% in Q1 2025, while the intelligent computing inference series has dropped from 100% to 1.25% during the same period [12][14] - The main revenue sources are the Xiyun C500 series products, which have gained substantial market recognition due to their performance and alignment with industry needs [15][16] - The company has focused its resources on flagship products, which is a common strategy among industry peers like Nvidia, where flagship products dominate revenue streams [18] Product Development and Market Trends - Muxi was established in 2020 with a clear focus on AI training and inference chips, aligning with the growing market demand for such products [10][14] - The company has successfully launched the Xiyun C500 series, which competes with Nvidia's A100 in performance, and has been well-received in various industry applications [15][16] - The GPU chip development cycle is long and capital-intensive, making the concentration on flagship products a strategic choice for Muxi [17] Competitive Landscape and Challenges - The domestic GPU market faces challenges such as competition from international giants, high customer service standards, and a relatively weak software ecosystem [22][23][24] - Muxi's products are positioned to meet the increasing demand for high-performance GPUs in AI applications, particularly in the context of geopolitical tensions and the push for domestic alternatives [15][26] - The company has established partnerships with various sectors, enhancing its market presence and brand recognition [27][28]

Core Insights - Huawei's Ascend 384 supernode has made its debut, achieving a computing power of 300 Pflops through self-developed Matrix-Link technology, positioning it as a competitor to NVIDIA's latest GB200 NVL72 [1] - Domestic AI chip manufacturers are collaborating to build a robust ecosystem, with significant advancements showcased at the World Artificial Intelligence Conference [2] - The performance of domestic AI chip companies has surged, with notable revenue increases reported across the sector [2][3] Group 1: Huawei and Its Innovations - Huawei's Ascend 384 supernode has been recognized as a "treasure of the exhibition" at the World Artificial Intelligence Conference, attracting significant attention [1] - The supernode's architecture allows 384 cards to operate as a single computer, showcasing its advanced capabilities [1] - The deployment of Huawei's technology is already in multiple data centers across the country, providing services to various sectors including internet and automotive [2] Group 2: Domestic AI Chip Developments - Companies like Nucypher and Suirun Technology are developing advanced chips, with the C600 model set for small-scale production in Q4 of this year [1] - The domestic AI chip industry is experiencing rapid growth, with companies like Moore Threads reporting a 256% increase in revenue, driven by AI computing business [2] - Cambrian Technology has turned a profit for the first time in years, with a 40-fold increase in revenue and over 2-fold profit growth in Q1 of this year [3] Group 3: Industry Trends and Collaborations - The domestic AI chip industry is moving towards a trend of adopting local chips, with significant collaborations among companies like Xizhi Technology and ZTE [2] - The introduction of light-interconnected GPU supernodes is expected to reduce power consumption and latency significantly [2] - The overall performance of domestic AI chips has led to a substantial increase in market presence, indicating a shift away from reliance on foreign technology [3]

Group 1 - Huawei's Ascend 384 super node has made its debut at the World Artificial Intelligence Conference, showcasing a computing power of 300 Pflops through its self-developed Matrix-Link network, positioning it against Nvidia's latest GB200 NVL72 [1] - Domestic AI chip manufacturers are collaborating to build a robust domestic computing power ecosystem, exemplified by products like the Xiyun C550 and C600 from Nuxi, which utilize self-developed architectures and are set for small-scale production in Q4 [1][2] - The domestic AI chip market has seen significant growth, with companies like Moore Threads reporting a 256% increase in revenue to 432 million yuan, and Nuxi's revenue surging over 1300% to 742 million yuan [2] Group 2 - The trend of adopting domestic AI chips is becoming irreversible, as evidenced by the increasing usage of these chips in various sectors, supporting China's computing backbone [3] - The collaboration among companies such as Xizhi Technology, Biyuan Technology, and ZTE has led to the development of the first domestic optical interconnect GPU super node, LightSphere X, which aims to reduce power consumption and latency [2]