Enflame Technology Co. Ltd., a Chinese artificial intelligence (AI) chipmaking company, has reportedly sealed a robust funding round of two billion yuan ($237.7 million) in a late-stage investment surge, according to several sources. The Series D round, unveiled yesterday and initially covered by Reuters, is spearheaded by a subsidiary of Shanghai International Group Co. Ltd., featuring notable contributions from Tencent Holdings Ltd., known for the WeChat app, and Meitu-a, the developers behind a popular photo editing app. Alongside them, a cohort of Chinese investors such as SummitView Capital, YTI Capital, Hundreds Capital, Redpoint China Ventures, and GF Qianhe Investment have reportedly jumped on board.
Enflame, founded in 2018, dedicates its efforts to the fabrication of computer chips pivotal for AI. The firm’s cloud chips have been leveraged across a spectrum of sectors including education, smart urban development, and scientific exploration. This funding infusion transpires amid a blossoming investor curiosity in AI infrastructure, sparked by the accolades of OpenAI LP’s ChatGPT, spotlighting the indispensable specialized hardware underlying AI models.
Yesterday’s financial boost, as articulated by founder and Chief Executive Zhao Lidong to the local media, is earmarked for forging superior AI chips through strategic alliances with sector frontrunners. Lidong envisions Enflame as a key player in sculpting the blueprint of upcoming AI chip standards. With a rich legacy in chipmaking, evidenced by his high-calibre roles at the state-run semiconductor giant Tsinghua Unigroup Ltd., Lidong brings a wealth of expertise to the table. His co-conspirator in founding Enflame, Zhang Yalin, formerly orchestrated the Shanghai research hub of Advanced Micro Devices Inc.
Tencent’s endorsement in this round isn’t to be skimmed over, given its past camaraderie with Enflame in birthing the AI chip “Zixiao”, dedicated to crunching images, videos, and natural language. As per Yao Leiwen, the steward of Tencent’s Investment Department, this alliance is poised to keep the momentum going in delivering top-tier AI solutions, particularly in the financial and transport domains.
Leading the round, Shanghai International Group, with a track record of backing AI fledglings, underscores its strategic intent to nurture AI ascendancy within the broader Shanghai vicinity.
Before this round, Enflame had a cash influx of 1.8 billion yuan back in January 2021, spearheaded by Primavera Capital Group, CITIC Private Equity, and CICC Capital. The narrative continued with an expanded Series C round in June 2022, directed by the China Integrated Circuit Industry Investment Fund II.
Featured image: Enflame
