The founder of the new company is a former Nvidia executive, which raised approximately US$1.13 billion in initial investments, becoming the second-largest IPO on the Shanghai Stock Exchange this year.

The company seeks to increase its technological independence from Western suppliers, competing directly with industry giants such as Nvidia and AMD.

The Chinese company intends to create a supply chain of electronic components used for Artificial Intelligence ventures, avoiding dependence on Western manufacturers.

In addition to its focus on AI, the company also plans to launch products for the end consumer, such as dedicated graphics cards for gaming.

Moore Threads was founded in 2020, but made its stock market debut on December 5th, showing a 425% increase in value in just one day. This value reflects the growing expectation that China will be able to circumvent the US embargo, which prohibits American companies from selling next-generation chips and boards to China, in an attempt to hinder the development of Chinese AI.

This company is launching at a critical time for the sector, as there is a widespread shortage of electronic components such as processors, GPUs, and RAM, both for businesses and end consumers. This is because large companies like OpenAI have placed massive orders for these components, almost depleting manufacturers' stocks, greatly increasing demand, and consequently, prices.

The expectation for 2026 is that Nvidia's market share in China will fall from the current 40% to just 8%, anticipating the replacement of its products with domestically produced alternatives by Chinese companies.