Megvii, a Chinese artificial intelligence (AI) business, has just announced its IPO on the Shanghai Stock Exchange. During its IPO, the firm, which is backed by internet titan Alibaba, garnered $922 million.
The firm intends to utilize the funding to grow its AI research and commercial activities. Megvii is most recognized for its face recognition technology, which is used in a variety of sectors, such as banking and retail.
Also, the business wants to utilize the funding to grow into other areas of artificial intelligence, including computer vision, natural language processing, and autonomous driving. Megvii has also said that it would utilize the funding to construct a research and development facility in Hangzhou, China.
In addition, Megvii intends to conduct an initial public offering on the Hong Kong Stock Exchange. By this sale, the corporation hopes to generate as much as $1.22 billion. The firm intends to utilize these funds to grow its AI business and continue its research and development initiatives.
Megvii’s IPO on the Shanghai Stock Exchange is seen as a significant achievement, since it is the first artificial intelligence business to go public on the platform. It is also an indication that the Chinese government is growing more receptive to the notion of artificial intelligence businesses going public.
The IPO is also seen as an indication of investors’ and the general public’s increasing acceptance of artificial intelligence. With AI’s expanding popularity, the firm intends to profit on the rising demand for AI-related services and goods.
Megvii’s IPO on the Shanghai Stock Exchange and its anticipated IPO on the Hong Kong Stock Exchange are seen as beneficial for the firm. Megvii will be able to continue to improve its AI technology and grow its commercial operations with the monies received. It is also indicative of the rising acceptance of AI and the commercial opportunities it presents.