China's Megvii, an artificial intelligence (AI) startup backed by Alibaba, has filed for an initial public offering (IPO) on the Shanghai Stock Exchange's STAR Market. Megvii said in a filing that it plans to raise up to $500 million through the IPO. The company will use the proceeds to bolster its research and development of AI technology and expand its sales and marketing efforts. Founded in 2011, Megvii is best known for its Face++ facial recognition software which is used by Chinese tech giants Alibaba and Tencent. The company has also been aggressively expanding into other areas of AI such as driverless cars and smart cities. If successful, Megvii's IPO would be the first by a major Chinese AI player and could give insight into investor appetite for these types of companies. So far this year, AI startups have raised over $11 billion in venture capital funding globally, according to CB Insights data. However, there have been few IPOs from these companies as most are still loss-making. For example, U.S.-based Peloton, which makes internet-connected fitness equipment, filed for an IPO last month with plans to raise up to $1 billion but it is yet to turn a profit. Stay tuned for more updates on this developing story!
Megvii, an AI startup backed by Alibaba, has filed for an IPO in Shanghai
Megvii, an artificial intelligence (AI) startup with backing from the Chinese e-commerce giant Alibaba, recently announced plans to launch an initial public offering (IPO) on the Shanghai Stock Exchange. The megvii IPO is looking to raise as much as $922 million in shares and could potentially be even larger depending background market conditions. The megvii IPO could be one of the larger offerings this year, despite ongoing US-China political tensions which could impact the success of the Hong Kong IPO that megvii had originally been planning. It's unclear yet how much megvii will be impacted by any potential restrictions imposed by US President Donald Trump. Either way, megvii is starting off its IPO journey in Shanghai this summer and many investors are watching with eager anticipation for how it fairs in both China and overseas markets.
The company is best known for its facial recognition technology, which it sells to the Chinese government
Megvii Technology Limited, a Chinese artificial intelligence start-up, recently made headlines when it announced its intent to launch an ipo on the Shanghai Stock Exchange. The company, better known by its brand name, Megvii HK, is best known for their facial recognition technology that they have been selling to the Chinese government and other entities. This has caused some controversy in light of the current political climate between US and China – US president Donald Trump issued an executive order that placed restrictions on the businesses of Megvii's American customers. Despite this setback, the ipo launch appears to be imminent and some investors are viewing this as a potential long-term opportunity.
Megvii is planning to raise $500 million through the IPO
Megvii is planning to raise $500 million in a publicly-traded Initial Public Offering (IPO). Founded in Beijing, the Chinese technology company has made its way to Shanghai for this highly anticipated debut. With an estimated 922m market cap and megvii's ties to President Trump, investors are eager to get their hands on this IPO. It remains unclear which markets megvii intends to launch in, however, it's without doubt that megvii will be met with both excitement and scrutiny. For now, megvii's offering promises unprecedented opportunities for investors.
The company's facial recognition technology has been criticized for being used by the Chinese government to track citizens
megvii, deemed by some as the ‘Chinese Facial Recognition Company' has had its share of controversy in recent years. After filing for what’s expected to be one of the biggest initial public offerings (IPO) on the Shanghai Stock Exchange this autumn, megvii was placed on a US economic blacklist by the Trump administration. This is largely due to megvii's facial recognition technology being used by the Chinese government to track its citizens – an act that has been widely criticised around the world as a form of cyber-surveillance and oppression. megvii truly stands at crossroads: will it be punished for its past wrongdoings or rewarded for its innovative technology? That is still to be determined.
Overall, Megvii is a major AI startup that has been making waves in the Chinese and international markets. With its IPO in Shanghai, they are set to expand their business and R&D efforts. While it faces competition from other AI startups in China and abroad, the company's facial recognition technology has been controversial due to its associations with the Chinese government's surveillance efforts. Nevertheless, Megvii plans on using the funds raised from their IPO to boost their operations, so it will be interesting to see how this state-of-the-art technology will continue to transform our lives for better or for worse. Whatever happens, it is clear that Megvii will be a force to be reckoned with for years to come in AI businesses and beyond.