StepFun is set to complete a funding round of nearly USD 2.5 billion as it accelerates its listing process. Corporate registration records show that the company completed its shareholding reform in April, changing its status from a limited liability company to a joint stock company limited by shares.
IPO Zaozhidao has learned that StepFun has also dismantled its red-chip structure, a move typically seen as a key prerequisite for a Hong Kong IPO.
According to a person close to the current financing transaction, one notable feature of the new round is the concentrated participation of industrial investors. In addition to financial investors, several companies from the smartphone and consumer electronics supply chain, including Huaqin Technology, Longcheer Technology, OmniVision, and ZTE, have joined the round. Together, they cover multiple segments, from device manufacturing to upstream core components.
Huaqin and Longcheer are both among the top global smartphone original design manufacturers (ODMs) providing device R&D, design, and manufacturing services. OmniVision supplies image sensors and sits upstream in key components such as smartphone cameras. ZTE’s smartphone business has previously worked closely with StepFun to co-develop artificial intelligence phone features, which have already entered mass production in several flagship models, including the Nubia Z80 Ultra.
The investor mix aligns with the broader migration of AI model capabilities to end devices. Over the past year, hardware makers across smartphones, PCs, and wearables have continued searching for ways to commercialize AI in their products, while model companies have been competing for user entry points.
Meanwhile, market chatter suggests OpenAI is accelerating development of its first agentic AI phone, with mass production possible as early as the first half of 2027. Against that backdrop, capital tie-ups could deepen the integration of technology, use cases, and supply chains.
Another less discussed but important factor is the investment by Hong Kong Investment Corporation, or HKIC. The investment platform, established by the Hong Kong government, has so far backed only one foundation model maker: StepFun. Its investment also offers an additional endorsement for StepFun’s planned Hong Kong listing.
This article was adapted based on a feature originally written by and published on IPO Zaozhidao. KrASIA is authorized to translate, adapt, and publish its contents.