time to read 1 minutes

Alibaba’s Megvii goes public for $925mINTL

Alibaba’s Megvii goes public for $925m

Chinese artificial intelligence startup Megvii Technology filed for a Chinese Depositary Receipt offering on Friday, which would take the company public on Shanghai’s STAR exchange. The company plans to issue up to 253 million Class B shares to raise around $925m.

Megvii Technology is backed by Alibaba (BABA) and is one of the world’s largest artificial intelligence startups. Driven by China’s focus on security, the startup specializes in facial recognition technology.

In 2019, Megvii applied for a listing on Hong Kong’s stock exchange, but the application lapsed after the company was blacklisted by the Trump administration over allegations it was involved in the persecution of China’s Muslim minorities.

why it matters
Megvii hopes to use the capital raised from their offering to fund research and development in robotics and other advancements in the "Internet of Things". Let's hope that China will use these advancements in AI for good and not evil.