Chinese AI start-up ModelBest kicks off pre-IPO tutoring process for mainland listing

Chinese AI startup ModelBest has initiated the pre-IPO preparation process in anticipation of a listing on the mainland Chinese market. The company is leveraging the rising demand for compact AI models that can operate locally on devices such as smartphones, laptops, and even cars. ModelBest, which was founded in August 2022, is focusing on its strategy of developing lightweight models optimized for domestic processors to address China's scarcity of advanced American computing chips.

The company has engaged Citic Securities to assist it in the pre-listing process, which typically takes a minimum of three months and involves aspects such as corporate governance, risk management, audit readiness, and information disclosure practices. Although ModelBest has not disclosed its intended fundraising amount, timeline, or listing platform, the mandatory pre-IPO process could potentially facilitate an IPO next year.

The company has already secured over 5 billion yuan ($738 million) in funding this year, with its most recent Series C+ funding round increasing its valuation to 20 billion yuan. A significant portion of ModelBest's success can be attributed to its edge AI approach, which emphasizes the use of smaller, more powerful models that run directly on end-user hardware, thereby minimizing latency, reducing cloud bandwidth costs, and preserving user privacy.

This strategy stands in contrast to the focus of global tech giants who continue to invest heavily in massive, cloud-based models. ModelBest's lightweight models, such as the MiniCPM5-1B, have gained traction across various sectors, including consumer electronics, automotive platforms, and robotics. The startup collaborates with several major hardware and automotive companies, including Huawei, Samsung Electronics, SAIC Motor, Changan Automobile, and Unitree Robotics.

The company's innovative approach and strategic partnerships have attracted significant investor interest, further positioning ModelBest as a key player in the rapidly expanding market for localized AI technology.