According to sources familiar with the matter, Chinese chip design startup Moore Threads recently concluded a capital raise, elevating its valuation to approximately 25 billion yuan ($3.449 billion) just before encountering U.S. export controls. The U.S. placed the graphic processing unit designer on a trade blacklist in October, preventing it from utilizing chip manufacturing services from major players like Taiwan Semiconductor Manufacturing Co (TSMC) that rely on U.S. equipment.
In the month preceding the U.S. export controls, Moore Threads secured approximately 1 billion yuan in a “series B+” funding round. Investors initially valued Moore at 24 billion yuan before the capital raise, with the subsequent injection of funds pushing the valuation to around 24.8 billion yuan.
Moore Threads, which strongly opposed its addition to the U.S. entity list, has not responded to requests for comments. Recent updates to Moore Threads’ company registration data on the third-party database Qichacha revealed the addition of new shareholders, including funds such as Houxue Qingxin and venture investment firm Chenan Zhizhi. The company also witnessed an increase in its registered capital.
Established in 2020, Moore Threads boasts a team composed mainly of former members from Nvidia and AMD, positioning itself as a prominent player in China’s pursuit of developing competitive products against market-leading Nvidia. The startup previously garnered investment from a fund associated with a unit of state-owned China Mobile, along with early funding from notable venture firms such as HongShan (formerly known as Sequoia Capital China), GGV, and ByteDance, the owner of TikTok.
The unfolding situation poses challenges for Moore Threads, emphasizing the complexities Chinese tech companies face amid escalating geopolitical tensions and regulatory scrutiny. The impact of the U.S. export controls on the company’s operations and future growth trajectory remains a subject of close attention within the industry.
