Alibaba Moves to List Nvidia Rival T-Head in Hong Kong Spin-Off
(MENAFN) Alibaba said Tuesday it will spin off its chip-design arm T-Head, a challenger to US chipmaker Nvidia, and list it separately on the Hong Kong Stock Exchange.
A regulatory filing shows the exchange has approved the plan to move forward. T-Head filed a confidential listing application on Sept. 11.
The deal would combine a public offering in Hong Kong with a placement for institutional and professional investors. T-Head, which supplies data center chips and computing solutions in China, is wholly owned by Alibaba and is expected to stay within the group after listing.
Alibaba has not settled the size or structure of the offering, nor how far its stake in T-Head will fall.
The company argued that a standalone listing would let investors evaluate T-Head on its own merits, raise its standing with customers and partners, and open direct routes to equity and debt financing.
The plan still requires Hong Kong listing approval, the completion of filing procedures with China’s securities regulator, and final sign-off from both companies. Alibaba cautioned that the spin-off may not go ahead, and that no timeline is guaranteed.
Nvidia under pressure as chip-sector IPO picture splits
The announcement lands as Nvidia confronts fresh scrutiny over reports that chief executive Jensen Huang was the target of a foreign intelligence operation.
In a statement Sunday, Huang admitted to infidelity in his marriage and promised to cooperate with an independent investigation. Nvidia’s board said it has no reason to believe US national security or company secrets were compromised.
On Tuesday, the company’s independent directors said they had hired former federal prosecutor Joon H. Kim and the law firm Wachtell, Lipton, Rosen & Katz to lead the inquiry.
Separately, US artificial intelligence firm Anthropic laid out terms for its initial public offering (IPO) in an amended regulatory filing Tuesday: 825 million shares at an estimated $70 to $78 each. The shares would come from both the company and existing shareholders, and the sale could reach $64.35 billion at the top of the range. Anthropic has applied for a Nasdaq listing under the ticker “ANT.”
Other Chinese chipmakers are reportedly facing setbacks. A financial news service reported that Kunlunxin, Baidu’s AI chip unit, may push its Hong Kong IPO to 2027 while it waits for Chinese regulatory approval. A Baidu representative dismissed what the company called market rumors and said it cannot disclose material nonpublic information while its confidential filing is under way.
A regulatory filing shows the exchange has approved the plan to move forward. T-Head filed a confidential listing application on Sept. 11.
The deal would combine a public offering in Hong Kong with a placement for institutional and professional investors. T-Head, which supplies data center chips and computing solutions in China, is wholly owned by Alibaba and is expected to stay within the group after listing.
Alibaba has not settled the size or structure of the offering, nor how far its stake in T-Head will fall.
The company argued that a standalone listing would let investors evaluate T-Head on its own merits, raise its standing with customers and partners, and open direct routes to equity and debt financing.
The plan still requires Hong Kong listing approval, the completion of filing procedures with China’s securities regulator, and final sign-off from both companies. Alibaba cautioned that the spin-off may not go ahead, and that no timeline is guaranteed.
Nvidia under pressure as chip-sector IPO picture splits
The announcement lands as Nvidia confronts fresh scrutiny over reports that chief executive Jensen Huang was the target of a foreign intelligence operation.
In a statement Sunday, Huang admitted to infidelity in his marriage and promised to cooperate with an independent investigation. Nvidia’s board said it has no reason to believe US national security or company secrets were compromised.
On Tuesday, the company’s independent directors said they had hired former federal prosecutor Joon H. Kim and the law firm Wachtell, Lipton, Rosen & Katz to lead the inquiry.
Separately, US artificial intelligence firm Anthropic laid out terms for its initial public offering (IPO) in an amended regulatory filing Tuesday: 825 million shares at an estimated $70 to $78 each. The shares would come from both the company and existing shareholders, and the sale could reach $64.35 billion at the top of the range. Anthropic has applied for a Nasdaq listing under the ticker “ANT.”
Other Chinese chipmakers are reportedly facing setbacks. A financial news service reported that Kunlunxin, Baidu’s AI chip unit, may push its Hong Kong IPO to 2027 while it waits for Chinese regulatory approval. A Baidu representative dismissed what the company called market rumors and said it cannot disclose material nonpublic information while its confidential filing is under way.
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