Chinese GPU maker Moore Threads reassured investors that its initial public offering (IPO) proceeds will be used as planned, following concerns over a recent announcement that up to 7.5 billion yuan (USD1.1 billion) could be allocated for cash management. The company emphasized that the actual funds managed will be significantly lower than the maximum figure disclosed, and the move will not affect ongoing research and development projects.

The clarification comes amid heightened investor scrutiny over the management of large IPO proceeds in China’s tech sector, where concerns have grown about companies diverting capital away from innovation. Moore Threads said the cash management plan is a routine financial strategy designed to optimize liquidity and ensure operational stability.

Founded to develop high-performance GPUs for domestic and international markets, Moore Threads has positioned itself as a challenger to established global players in the graphics processing sector. Its R&D efforts have focused on advancing GPU architecture, computing performance, and compatibility with AI workloads, which the company says remain fully funded.

The firm’s statement aims to reassure shareholders and the broader market that strategic investments in product development and technological innovation will continue as planned, despite the temporary allocation of IPO funds to cash management initiatives.