StepFun Charges Toward Hong Kong IPO

Shanghai's AI scene is buzzing as local startup StepFun prepares to take its ambitious large language model technology public. Sources indicate the company plans to raise approximately $500 million through a Hong Kong listing later this year.

Leadership With Microsoft Pedigree

At the helm stands Jiang Daxin, whose resume includes stints as Microsoft's global vice president. Since founding StepFun in 2023, Jiang has steered the company toward developing foundational AI models while pursuing an "AI + Hardware" integration strategy that's caught investors' attention.

"Having someone with Jiang's technical credentials leading an AI startup immediately commands respect," notes Li Wei, a Shanghai-based tech analyst. "It signals both technical depth and business acumen."

Funding Momentum Builds

The company recently closed a substantial B+ funding round worth over 500 million RMB ($70 million), with Shanghai Guotou Pioneer Fund and China Life Equity taking lead positions. Notably, existing backers Tencent and Qiming Venture Partners doubled down on their investments.

This latest cash infusion follows strategic additions to StepFun's shareholder registry, including state-backed China Beizhang Communications. The company's registered capital now stands at nearly 24 million RMB.

Why Hong Kong? Why Now?

As model development enters increasingly resource-intensive phases, public markets offer AI firms like StepFun sustained funding access. A successful listing would provide:

• Continuous R&D financing
• Talent acquisition advantages
• Strategic partnership opportunities

Industry watchers see StepFun's move as potentially kicking off a wave of Chinese AI IPOs. "The timing makes sense," observes THS Finance analyst Zhang Yue. "Market conditions are stabilizing, and investors remain hungry for credible AI plays."

The proposed valuation—potentially exceeding $2 billion—would position StepFun among China's most valuable private AI companies. All eyes now turn to Hong Kong regulators as filing documents await submission.

Key Points:

• $500M IPO target for Hong Kong listing
• Ex-Microsoft exec leads technical team
• Tencent-backed with recent B+ round
• "AI + Hardware" strategy differentiates
• Could spark wave of Chinese tech listings