China's Deepexi Files for Hong Kong IPO Amid Enterprise AI Pivot

(Image Source: Photo by Lin Zhijia, TMTPost AGI Editor)

TMTPOST -- Chinese AI startup Deepexi Co., Ltd. has filed for an initial public offering on the Hong Kong Stock Exchange, aiming to become the first enterprise-level AI solutions provider to go public in the city in 2025.

The IPO application, submitted on Tuesday, lists CITIC Securities, Minsheng Capital, Guotai Junan International, Pu Yin International, and BOCOM International as joint sponsors.

Founded in 2018, Deepexi was initially recognized as a key player in the enterprise “middle platform” space—technology architecture designed to centralize data and operational infrastructure across business units. But in recent years, the company has pivoted sharply amid the generative AI boom, transforming into a full-stack enterprise AI application provider with flagship platforms such as FastData and FastAGI.

CEO Zhao Jiehui, a former Huawei and Alibaba Cloud executive, has been the architect of this transformation. Zhao, 45, spent over two decades in the IT sector and played a critical role in Alibaba's early middle platform architecture before launching Deepexi. Under his leadership, the company has positioned itself as a bridge between traditional enterprise systems and next-generation AI models.

The turning point came in 2023, during the global frenzy sparked by OpenAI's ChatGPT. Deepexi quickly launched FastAGI, a generative AI solution tailored for enterprise needs. By 2024, the platform had seen large-scale commercialization across verticals such as retail, manufacturing, and healthcare. According to the prospectus, Deepexi captured 4.2% of China's enterprise-level large model AI application market in 2024 and is expected to grow that share to 4.4% in 2025.

Despite strong growth, the company remains deeply unprofitable. Deepexi reported revenue of RMB 243 million in 2024, up from RMB 100 million in 2022—representing a compound annual growth rate of 55.5%. However, losses have widened substantially, reaching RMB 1.25 billion last year, over five times its annual revenue. The company attributes these losses to aggressive R&D investments and share-based payment expenses. In total, Deepexi has lost over RMB 2.4 billion in the past three years.

Deepexi's data intelligence solution, FastData, accounted for 62.8% of 2024 revenue, while FastAGI contributed the remaining 37.2%. The firm served 245 enterprise clients last year, up from 129 in 2022.

With nine funding rounds and backing from investors including Hillhouse Capital, IDG Capital, and the Shanghai AI Investment Fund, Deepexi was valued at $1 billion as early as 2021. Zhao remains the largest shareholder with 34.95% equity and 64.17% of voting rights, thanks to a dual-class share structure.

Looking ahead, the company plans to use IPO proceeds to further develop its FastData Foil integration platform, expand the Deepexi large model platform, and build in-house computing infrastructure. Deepexi also aims to grow its workforce in sales, delivery, and R&D, with a focus on four industries: consumer retail, healthcare, manufacturing, and transportation.

Still, the prospectus notes significant business risks, including capital demands, tech innovation pressures, and commercialization hurdles. But Zhao appears confident that the next wave of enterprise AI will be won not just by tech, but by execution—turning architecture into application.

(Note: 1 USD equals about RMB 7.2)