In product planning, Muxi has built a full-stack GPU product matrix spanning three major domains—AI computing, general-purpose computing, and graphics rendering—demonstrating a clear sense of strategic layering. The Xisi N-series focuses on intelligent computing inference; the Xiyun C-series targets integrated training-and-inference as well as general-purpose computing; and the Xicai G-series aims at the graphics rendering market, forming a product rhythm of “essential demand first, high-end breakthrough later.” Among these, the launch of the Xiyun C600 chip is a milestone event: its end-to-end domestically localized process—spanning design, manufacturing, to packaging and testing—has broken domestic dependence on overseas products for high-end GPUs, successfully entering core customer scenarios such as national-level supercomputing centers and major internet companies. Even more noteworthy is that Muxi’s self-developed MXMACA software stack achieves a high degree of compatibility with the CUDA ecosystem, supporting over 6,000 CUDA applications and significantly reducing customer migration costs. This combined strategy of “hardware breakthrough + software adaptation” has given it a first-mover advantage in the competition for domestic substitution.
IV. Capital Operation Logic: A Dual Victory of Long-Term Positioning and Industrial Empowerment
Muxi’s path to listing is a classic case of capital positioning. From nearly RMB 100 million (approx. USD 14.20 million) in angel-round financing in its early days, to a contrarian breakthrough in the Pre-B round, to the gathering of over 100 shareholders ahead of the IPO, the core of its capital logic has been the sustained兑现 (realization) of “long-term value.” Early investor Hexuan Capital made additional investments for three consecutive rounds, with cumulative investment reaching nearly RMB 200 million (approx. USD 28.40 million). Beyond providing funding, it also deeply empowered the company by connecting it with core customers and building overseas channels; its “investment + service” model became an important driver of Muxi’s growth. When competition for Pre-IPO allocations was fierce, Muxi did not blindly push up its valuation; it maintained a pre-money valuation of RMB 15.88 billion (approx. USD 2.26 billion), highlighting the founder’s long-termist philosophy. Private-equity heavyweight Ge Weidong, through Chaos Investment, cumulatively invested RMB 1.2 billion (approx. USD 170.41 million). After listing, his paper gain exceeded RMB 10.0 billion (over USD 1.42 billion), reflecting both his precise grasp of the domestic-substitution trend in hard tech and the capital market’s scarcity pricing for high-quality GPU companies.
V. Industry Competitive Landscape: A Domestic GPU Duopoly and Ecosystem Breakthrough
Muxi’s listing further intensifies competition and differentiation in the domestic GPU track. The current domestic GPU market shows a pattern of “two champions standing side by side, with multiple points of blossoming,” with Muxi and Moore Threads, respectively, becoming core players via differentiated routes of “high-performance general-purpose” and “full-function coverage.” Although domestic GPUs still lag NVIDIA in single-card computing power and software ecosystem, Chinese companies are rapidly narrowing performance gaps through advanced Chiplet packaging technologies and cluster-based deployment. In terms of market space, China’s GPU market reached RMB 163.8 billion (approx. USD 23.26 billion) in 2024, is projected to exceed RMB 1 trillion (over USD 142.01 billion) by 2029, and the domestic substitution rate is expected to rise from the current 30% to 55% by 2027. This massive incremental growth provides room for companies such as Muxi to expand. The key to future competition will shift from a single-dimension contest of chip performance to a comprehensive battle of “chip – software – ecosystem.” With its full-stack autonomous technology and early customer accumulation, Muxi is expected to secure a dominant position in the segmented market of AI training and inference.
VI. Risks and Challenges: The Growth Proposition Under a High Valuation
Despite its stunning first-day performance, Muxi still faces multiple growth challenges. Financially, the company’s revenue CAGR from 2022 to 2024 reached 4,074.52%, but it has not yet turned profitable; it recorded a loss of RMB 346 million (approx. USD 49.14 million) in the first three quarters of 2025, and profitability pressure under heavy R&D investment will persist over the long term. Technologically, the GPU industry iterates rapidly; advanced products such as NVIDIA’s H200 are forcing domestic technology to accelerate catch-up, making the mass-production progress of the Xiyun C600 and the R&D rhythm of next-generation products critical. In the market, a price-to-sales ratio of 159x is significantly higher than the industry average, highlighting the risk of short-term valuation volatility, while share lock-up expirations and intensifying industry competition may trigger sharp stock price fluctuations. In addition, uncertainty in overseas chip supply policies and the ongoing investment required for software-ecosystem adaptation are also long-term issues Muxi must contend with.
[Disclaimer]: The above content reflects analysis of publicly available information, expert insights, and BCC research. It does not constitute investment advice. BCC is not responsible for any losses resulting from reliance on the views expressed herein. Investors should exercise caution.