Behind the Sky-High Valuation of China’s AI IPOs

China is letting AI and semiconductor startups go public at a furious pace. Since December, two developers of large language models and four designers of graphics processing units have listed on stock exchanges in Hong Kong and Shanghai, raising a total of over $4 billion.

At least two more are in the pipeline. Kunlunxin, the chip arm of Baidu, is seeking to raise up to $2 billion in Hong Kong, according to Bloomberg. Enflame, a Shanghai-based GPU designer 20% owned by Tencent Holdings, was approved on Thursday to raise 6 billion yuan ($860 million) in the city’s bourse.