Stepfun is said to be aiming for HK IPO as soon as this year
TL;DR
StepFun, a Chinese AI developer, is reportedly targeting a Hong Kong IPO in 2026, leveraging its focus on multimodal AI and physical-world integration. The company has secured significant funding and partnerships, positioning it uniquely in a competitive market.
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Stepfun is said to be aiming for HK IPO as soon as this year
StepFun’s Strategic Positioning and IPO Speculation in China’s AI Sector
StepFun, a Chinese artificial intelligence (AI) developer, has emerged as a key player in the sector following its RMB 5 billion ($700 million) Series B+ funding round in July 2025, which closed in six months. The company, known for its low-profile approach, has drawn attention for its focus on multimodal AI systems and physical-world terminal integration, differentiating itself from peers like Zhipu AI and MiniMax, which emphasize enterprise or consumer software according to market analysis.
Recent developments suggest StepFun may pursue a Hong Kong initial public offering (IPO) in 2026, aligning with broader trends in China's AI capital markets. The company's technical roadmap—prioritizing unified multimodal understanding and generation—has attracted a diverse investor base, including state-backed capital, industrial partners, and USD-denominated funds as reported. This strategy contrasts with competitors who have aggressively pursued traffic-driven growth, a tactic StepFun avoided to maintain financial discipline according to analysis.
StepFun's commercial partnerships with automotive and smartphone manufacturers, such as Geely and Oppo, highlight its push into on-device AI deployment. By 2025, terminal API calls grew 170% quarter-over-quarter, with Oppo accounting for 60% of China's leading smartphone brands integrated with StepFun's technology. In automotive applications, the company aims to integrate its models into one million vehicles this year.
The timing of potential IPOs reflects broader market dynamics. Hong Kong has become a hub for AI listings, with Zhipu AI and MiniMax going public in early 2026, while StepFun and Moonshot secured large private rounds according to market data. Investors are increasingly scrutinizing technical differentiation and commercial viability, as public markets demand measurable outcomes. StepFun's emphasis on physical-world AI and edge-cloud coordination positions it as a non-consensus player in a consolidating industry as analysis shows.
However, challenges remain. China's AI sector faces intense competition, regulatory scrutiny, and technical verification gaps. StepFun's path to profitability will depend on scaling its terminal deployments and demonstrating long-term value against peers. With its recent funding and strategic leadership changes—including the appointment of Yin Qi, former Megvii CEO—StepFun appears poised to navigate these challenges, though its IPO timeline will hinge on market conditions and execution progress according to reports.
(https://www.linkedin.com/pulse/chinas-ai-capital-markets-public-funding-shift-ai-market-watch-ebcic): China's AI Capital Markets: The Public Funding Shift
(https://kr-asia.com/as-ai-consolidates-what-makes-stepfun-worth-a-rmb-5-billion-raise): As AI consolidates, what makes StepFun worth a RMB 5 billion raise?
