Chinese AI unicorn 4Paradigm makes third IPO attempt in Hong Kong, but cites chip supply risks amid US sanctions

After two previous applications to list in Hong Kong lapsed for unknown reasons, the developer of specialised AI software hopes the third time’s the charm

4Paradigm faces risks of tightened semiconductor shipments and tense US-China relations that already frustrated IPOs from AI giants SenseTime and Megvii

Reading Time:2 minutes

4Paradigm, which has filed for a third time to go public in Hong Kong, provides AI software that allows enterprises to develop their own decision-making AI applications in a range of industries. Photo: Shutterstock

Published: 5:16pm, 6 Sep 2022

Chinese artificial intelligence (AI) firm Beijing Fourth Paradigm Technology Co, or 4Paradigm, has filed for a Hong Kong initial public offering for a third time after two failed attempts to land a listing.

The company is the latest Chinese AI company to pursue a public listing in the city amid growing tensions between Beijing and Washington, which has targeted firms developing the cutting-edge technology and limited access to advanced semiconductors, a critical component for powering AI computing.

As a result, 4Paradigm warned that “export controls and economic or trade restrictions” may impact its business, according to its latest prospectus filed with the Hong Kong stock exchange on Monday.

Previous applications to go public in August 2021 and last February lapsed for unknown reasons.

Founded in 2014, 4Paradigm provides AI software that allows enterprises to develop their own decision-making AI applications in a range of industries such as banking, insurance, retail and agriculture. The start-up has raised more than US$1 billion from Goldman Sachs, Sequoia China, and Citic Private Equity, among others. It was valued at about US$3 billion last year.