Chinese AI server leader xFusion moves closer to public market debut

Chinese AI server leader xFusion has hired an investment bank Citic Securities, taking its first formal step towards a stock market listing, as interest in AI companies continues to grow.

As Beijing increases support for domestic substitutes, this move will help position xFusion alongside other Chinese tech companies looking to access capital markets. At the close of 2025, xFusion announced by way of regulatory filings that it appointed Citic Securities as part of its preparation for an initial public offering (IPO).

Under this arrangement, the senior management of xFusion will participate in an official IPO tutoring program.

According to the Chinese Ministry of Industry and Information Tech, xFusion is currently the leading manufacturer of AI servers in China and realized revenues in excess of 40 billion yuan during the 2024 financial year. There continues to be a massive increase in the demand for computing power as businesses from all sectors embrace AI technology.

xFusion prepares for listing as AI fever grows

The timing of the IPO “tutoring” process is expected to occur early January until potentially April or May based on the filing provided by the China Securities Regulatory Commission. While the filing does not specify a timeline for the listing, it is apparent xFusion would like to proceed towards the listing process.

As a result of tightened export controls, the Chinese regulatory agencies have expedited their regulatory approvals of additional companies in the strategic sectors, such as AI and semiconductor manufacturing, to minimize reliance on US tech for their critical operations.

Such firms, as well as several other AI semiconductor companies, have recently gone public on both the Shanghai and Hong Kong stock exchanges and have had very successful first-time debuts.

According to a Reuters report, Biren Technology had a noteworthy jump on its opening day in Hong Kong, while Moore Threads Technology and MetaX Integrated Circuits experienced a threefold increase upon listing their shares on the Shanghai Exchange.

This trend has reportedly resulted in meaningful gains for the CSI AI Index due to what one industry observer characterizes as an “intense rush” for all things related to AI.

xFusion is considered “a leading provider of global computing and service infrastructure,” with over 100 markets across the globe and a diverse clientele from telecoms to transportation, according to its site.

According to a consulting firm known as Greatwall Strategy Consultancy, xFusion was valued at about $9 billion as of 2023. The company was spun off from Huawei in 2021, after the telecoms giant was placed on a US trade blacklist.

Local media reports say shareholders include China Telecom Group Investment and China Mobile Capital Holding, two state-linked investors with deep pockets and strategic influence.

China backs domestic AI push amid global rivalry

The political backdrop around these types of listings, such as xFusion’s, will likely continue to create more incentive for like-minded companies to list by using an investment bank. The national government has made it very clear that it is focused on making technological advancements and will continue to invest in such technology.

The move aligns with what the government has been advocating for. As previously reported by Cryptopolitan, Xi stated in a New Year’s Eve address that China will be a leader in advancing technology, and he highlighted China’s rapid growth in terms of innovative capacity.

He also highlighted China’s AI capabilities, including, but not limited to, AI chips and models, humanoid robotic technology, advancements in drone technology and military drones, as well as the advanced aircraft carrier that China has developed which uses electromagnetic launch systems.

That message also coincides with what is being witnessed in the marketplace. There is a growing consensus that with increasing support at the government level and increased domestic demand, this sector will continue to be shielded from external pressures.

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