Group 1 - The core point of the article is the successful approval of Muxi Integrated Circuit's general-purpose GPU chip, indicating a positive development for the company [2] - Three months prior, there was an invitation to publish an article about Muxi's significant losses, which was suggested to be a competitive tactic by rivals [4][6] - The author underwent internal training on media management, highlighting that companies may spend hundreds of thousands on media during the IPO process [15][14] Group 2 - The training included specific case studies that revealed missed investment opportunities in the field of self-media related to investment [16] - The article concludes with congratulations to Muxi for passing the review process, indicating a shift in sentiment towards the company [18][19] - The author clarifies that they have no financial ties or social relationships with Muxi's management, ensuring objectivity in the analysis [20]

Core Viewpoint - The upcoming IPO of Muxi Co., Ltd. is set for review by the Shanghai Stock Exchange on October 24, 2025, indicating strong support for the company's listing process [1][2]. Company Overview - Muxi Co., Ltd. is a leading domestic player in high-performance general-purpose GPUs, having achieved significant technological breakthroughs in the AI chip sector, traditionally dominated by international firms [2]. - The company's revenue has seen explosive growth, with figures rising from 42.64 thousand RMB in 2022 to 743 million RMB in 2024, reflecting a compound annual growth rate of 4074.52% [2]. Shareholder Structure - The largest shareholder, Shanghai Jiaomai, holds only 13.30% of the shares directly, while the founder, Chen Weiliang, and Shanghai Xiji control a combined 22.94% of the company [3]. - Muxi Co., Ltd. has a total of 124 shareholders, with 113 holding less than 5% each, collectively owning 64.45% of the company, indicating a highly fragmented ownership structure [3]. Financial Investors - Most shareholders, including major stakeholders like Chaos Investment and Sequoia Capital, have issued commitments not to seek control, categorizing them as financial investors [4]. - The majority of these financial investors entered the company shortly after its establishment in September 2020, suggesting a strategy focused on capitalizing on the upcoming IPO [6][9]. IPO Dynamics - The influx of financial investors is seen as a strategy to benefit from the IPO, with many expected to cash out once the shares are listed [11]. - The company’s rapid acceptance of numerous investors prior to the IPO raises questions about the motivations behind these investments and the implications for future public investors [11].

Core Insights - The Chinese government is enhancing support for unprofitable but technologically strong companies in the high-tech sector, particularly through reforms in the capital market aimed at fostering innovation and development in hard technology [1] - Muxi Integrated Circuit (Shanghai) Co., Ltd. is positioned to benefit from these policy changes, focusing on general-purpose GPU chip development and achieving technological breakthroughs in the AI chip sector [2] - The GPU industry is characterized by high technical barriers and significant R&D investment, with leading companies like NVIDIA dominating the market [3] - The demand for computing power chips is rapidly increasing due to the proliferation of AI applications, with the domestic GPU market expected to grow significantly [4] - Muxi's business model aligns with global trends, targeting the high-value data center market and developing products that compete with leading international offerings [5] Group 1 - The China Securities Regulatory Commission (CSRC) has implemented reforms to support the development of unprofitable tech companies, indicating a shift towards accommodating high R&D, long-cycle industries [1] - Muxi has reported a backlog of orders amounting to 1.43 billion yuan, providing a solid foundation for future growth amid the rapid development of AI and domestic substitution trends [2] - The GPU design process involves multiple specialized fields and typically requires 2-3 years from design to mass production, reflecting the industry's complexity and high entry barriers [3] Group 2 - The domestic accelerated computing server market is projected to reach approximately $22.1 billion in 2024, with GPU servers holding a dominant market share of 69% [4] - The ongoing export controls on high-end AI chips from overseas are driving the need for domestic alternatives, creating a favorable environment for local GPU companies [4] - Muxi's focus on general-purpose GPUs for data centers aligns with the industry's highest value density, as evidenced by NVIDIA's significant revenue from its data center business [5]

Core Viewpoint - The article emphasizes the supportive regulatory environment for hard technology companies, particularly in the GPU sector, highlighting the potential for growth and investment opportunities in this area due to recent policy changes and market dynamics [1][4]. Group 1: Regulatory Environment and Support - The China Securities Regulatory Commission (CSRC) has introduced measures such as the "16 Articles for Science and Technology Innovation" and "8 Articles for the Science and Technology Innovation Board," which enhance the capital market's acceptance of hard technology companies [1]. - The regulatory support is particularly aimed at unprofitable but technically strong science and technology enterprises, indicating a shift towards accommodating high R&D, long-cycle industries [1]. Group 2: Company Profile - Muxi Integrated Circuit - Muxi Integrated Circuit (Shanghai) Co., Ltd. focuses on general-purpose GPU chip development and has achieved technological breakthroughs in the AI chip sector, traditionally dominated by international firms [2]. - Despite currently being in a loss-making state, Muxi's significant R&D investments reflect its commitment to core technology and its strategic contribution to national computing infrastructure [2]. - As of September 5, 2025, Muxi has secured orders worth 1.43 billion yuan, providing a solid foundation for future growth [2][8]. Group 3: Market Dynamics and Demand - The GPU market is characterized by high technical barriers, with design processes typically taking 2-3 years and requiring substantial R&D investments [3]. - The global GPU market is dominated by a few players, with NVIDIA holding over 80% market share, indicating high entry barriers for new competitors [3]. - The rapid adoption of AI applications is driving demand for computing chips, with the domestic accelerated computing server market projected to reach approximately $22.1 billion in 2024, with GPUs accounting for 69% of this market [4]. Group 4: Financial Performance and Growth Trajectory - Muxi's revenue has shown rapid growth, with a compound annual growth rate of 4074.52% over the past three years, indicating successful commercialization of its products [7]. - The company aims to achieve breakeven by 2026, supported by a strong order backlog and anticipated revenue growth [8][9]. - Muxi's long-term technical accumulation is a core driver of its accelerated commercialization, with over 25,000 GPUs sold and applications across various intelligent computing clusters [7].

Core Viewpoint - The article discusses the competitive landscape of AI chip companies in China, focusing on the IPO race between Moer Technology and Muxi Integrated Circuit, both aiming to become the first public company in the general GPU sector in China [2][3]. Company Overview - Moer Technology and Muxi Integrated Circuit are both AI chip unicorns with valuations exceeding 20 billion yuan, targeting the rapidly growing AI chip market [2][4]. - Moer Technology was founded by Zhang Jianzhong, a former NVIDIA executive, while Muxi was established by Chen Weiliang, a former AMD chief GPU designer [5][9]. Market Dynamics - The Chinese GPU market is experiencing rapid growth, projected to increase from 40 billion yuan in 2020 to over 160 billion yuan by 2024, driven by AI advancements [6]. - Both companies are in a race to secure funding through IPOs to support their high R&D expenditures and ongoing losses in a capital-intensive industry [3][4]. Financial Performance - Moer Technology's revenue has shown significant growth, with figures of 46 million yuan in 2022, 124 million yuan in 2023, and projected 438 million yuan in 2024, reflecting a compound annual growth rate (CAGR) of 209% [8]. - Muxi has experienced explosive revenue growth, with revenues of 426,400 yuan in 2022, 53.02 million yuan in 2023, and 743 million yuan in 2024, achieving a staggering CAGR of 4074% [11][12]. R&D Investment - Moer Technology has maintained high R&D spending, with expenditures of 1.116 billion yuan, 1.334 billion yuan, and 1.359 billion yuan over the past three years, significantly outpacing its revenue [8][13]. - Muxi's R&D investments have also been substantial, with amounts of 648 million yuan, 699 million yuan, and 901 million yuan in the same period, although its R&D spending as a percentage of revenue is lower than that of Moer [13]. Competitive Landscape - Both companies face significant competition from established players like Huawei, which holds a 20% market share with its Ascend series chips, while NVIDIA's special edition for China commands a 70% market share [4][20]. - The article highlights that despite their advancements, Moer and Muxi still lag behind NVIDIA and Huawei in terms of technology and market share [4][21]. Investment Backing - Both companies are backed by prominent investment firms, including Sequoia China and Lenovo Ventures, which have invested in multiple funding rounds [16][18]. - Moer Technology has completed six funding rounds, while Muxi has completed eight, indicating strong investor confidence in their growth potential [16][18].