Tencent-Invested Firm Enflame Technology Launches New Company With $15.7 Million

According to Chinese business inquiry platform Qichacha, Shanghai-based AI cloud computing startup Enflame Technology on Thursday established a new subsidiary in Chengdu with a registered capital of 100 million yuan ($15.7 million). Tencent, a Chinese internet services giant, holds 20.47% of shares of Enflame Technology.

The subsidiary’s business scope includes the design and sale of integrated circuits, as well as AI hardware and software development.

Founded in March 2018, Enflame Technology is the first startup in China with high-performance cloud training and cloud reasoning products. Previously, it launched the company’s first cloud AI training chip Suisi, the first cloud AI training accelerator card Yunsui T10 and inference product Yunsui i10, as well as the computing and programming platform Yusuan.

Since its establishment, Enflame Technology has obtained five rounds of financing, with a cumulative amount of nearly 3.2 billion yuan ($502 million). On January 5 this year, Enflame Technology announced the completion of round C financing of 1.8 billion yuan, which was led by CITIC Private Equity Funds Management, CICC Capital and Primavera Capital Group, followed by Tencent, SummitView Capital, Redpoint China Ventures and many other shareholders.

The main members of Enflame Technology’s R&D team have more than 15 years of experience in developing and mass-producing high-end chips and related software ecosystems.

At present, Enflame Technology has obtained 52 patents, including 45 invention patents, and nearly 30 patents are in the process of application. These patents cover technologies of making chip’s computing units, core functional modules, packagings, and software architecture and optimization.

SEE ALSO: Tencent-backed AI Cloud Computing Platform Enflame Closes Its RMB 700 Million Series B

Yao Leiwen, the managing director of Tencent Investment, said that after the successful tape-out of Enflame Technology’s chips, the two companies have carried out in-depth cooperation based on different application scenarios.

IDC pointed out in the “2020-2021 China artificial intelligence computing power development evaluation report” that more than half of enterprises will spend more than $10 million on AI infrastructure in 2020. It is estimated that by 2025, the global AI server market will exceed $26 billion.