China’s leading artificial intelligence server provider xFusion has taken a formal step toward a stock market debut, hiring Citic Securities to guide it through preparations for an initial public offering, as investor appetite for AI-linked companies continues to surge.
A regulatory filing published on Wednesday on the website of the China Securities Regulatory Commission showed that the Henan province-based company signed an agreement with Citic on Dec. 31 to begin the IPO “tutoring” process. The programme, which runs from January to April or May, is designed to prepare xFusion’s executives and operations for the disclosure, governance, and compliance demands of a public listing.
The move places xFusion among a growing list of Chinese technology firms seeking to capitalize on strong market enthusiasm for artificial intelligence, particularly in areas tied to domestic computing infrastructure.
xFusion has emerged as a heavyweight in China’s AI supply chain. According to information published on the Henan provincial government website, the company was the country’s top AI server provider in 2024, with sales exceeding 40 billion yuan ($5.72 billion). Its servers are a critical component in training and running AI models, an area Beijing has prioritized as access to advanced U.S. chips and technology becomes increasingly constrained.
Chinese authorities have in recent months accelerated IPO approvals for companies in AI, semiconductors, and related hardware, part of a broader push to strengthen domestic alternatives to U.S. technology following export controls imposed by Washington. That policy backdrop has helped fuel a wave of listings and sharp first-day gains.
Several AI chipmakers have already made their market debuts. Shanghai Biren Technology was listed in Hong Kong in recent weeks, with its shares jumping 76% on the first day of trading. Moore Threads Technology and MetaX Integrated Circuits both listed in Shanghai last month, surging roughly 400% and 700% respectively on debut, underscoring the intensity of investor demand.
That enthusiasm has spilled across the broader market. The CSI AI Index climbed 67% in 2025, reflecting a powerful rally in companies linked to artificial intelligence hardware, software, and infrastructure, even as parts of China’s wider equity market remained under pressure.
xFusion’s business profile fits squarely into that narrative. On its website, the company describes itself as a global provider of computing infrastructure and services, with operations in more than 100 countries and regions. Its customer base spans telecoms, finance, transportation, and internet companies, highlighting its role as a behind-the-scenes enabler of digital and AI-driven services.
The company was valued at nearly $9 billion in 2023, according to consultancy Greatwall Strategy Consultants, as cited by the Henan government website. That valuation gives an indication of the scale at which xFusion could enter public markets, depending on timing, market conditions, and regulatory approvals.
xFusion was spun off from Huawei in 2021, as the telecoms giant restructured parts of its business following U.S. sanctions that cut it off from key technologies. Huawei remains on a U.S. blacklist, a status that has reshaped China’s tech ecosystem and encouraged the creation of more independent, domestically focused players.
Local media have reported that xFusion’s shareholders include China Telecom Group Investment and China Mobile Capital Holding, tying the company closely to state-backed telecoms groups that are central to China’s data and cloud infrastructure.
While the regulatory filing does not specify where xFusion plans to list, the hiring of Citic Securities and the timing of the tutoring process suggest momentum toward a domestic or Hong Kong IPO, in line with recent AI listings. For Beijing, such deals serve both capital market and strategic goals, channeling funding into sectors seen as critical to technological self-sufficiency.
xFusion’s preparations add another potential blockbuster name to an already crowded AI pipeline for investors. Analysts expect demand to remain as feverish by the time it reaches the market, depending on broader market conditions.
