Core Insights - Muxi Co., Ltd. identifies government and enterprise clients as one of its main customer segments [2] - The Xisi N100 product, launched in 2022, is the company's first product designed for various traditional AI application scenarios, providing strong inference computing power and video encoding/decoding capabilities [2] - Subsequent products in the Xisi N series, such as Xisi N260 and Xisi N300 (under development), are primarily aimed at cloud-based AI inference scenarios under generative artificial intelligence, featuring powerful mixed-precision computing power and large memory capacity [2] Product Details - The Xisi N100 product is applicable in smart city, smart transportation, smart education, and intelligent video processing sectors [2] - The upcoming Xisi N series products support mainstream deep learning development frameworks and are designed to provide end-to-end acceleration services for content generation applications and large language models [2] - The company commits to timely information disclosure in accordance with relevant regulations to ensure investors' right to know [2]

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]