01.AI, the artificial intelligence startup founded by renowned AI pioneer Kai-Fu Lee, is targeting a Hong Kong initial public offering as early as next year, according to sources familiar with the matter.
The company, which develops large language models and AI applications for the Chinese market, has been in discussions with investment banks about a potential listing that could value the startup at several billion dollars. A Hong Kong IPO would give 01.AI access to international capital markets while maintaining its operational focus on China.
The move comes as Chinese AI companies are racing to secure funding for expensive compute infrastructure and talent, amid an intensifying global race to develop cutting-edge AI models. 01.AI has distinguished itself by focusing on efficient, smaller models that can run on less expensive hardware, targeting enterprise customers who need practical AI deployment rather than frontier research.
Kai-Fu Lee, a former Google China president and Microsoft executive, founded 01.AI in 2023. The startup has raised significant venture capital backing and is among a handful of Chinese AI companies considered competitive with US counterparts.
