Singapore-based server firm xFusion, which was spun out of Huawei, is reportedly looking to go public.

DigitTimes Asia cited a Chinastarmarket.cn report that the company, which designs and manufactures servers for applications in data centers and cloud computing, values itself at around $14 billion.

The vendor was spun out of Huawei in 2021, essentially encompassing part of the Chinese giant’s server x86 division after the Chinese giant’s blacklisting in the U.S. made it subsequently difficult to access servers from Intel.

In addition to designing its own computing systems, the Zhengzhou-based vendor has a sizable supply chain, including a site in Malaysia responsible for much of its production capacity.

Reports last year suggested that China-based IT services firm Bringspring Science and Technology was looking to acquire xFusion, though that was later refuted by Bringspring. The pair enjoyed a business partnership via Bringspring subsidiary Smart We, which supplies components for xFusion's servers.

Should xFusion undertake an IPO, it would be the second Huawei spin-out of late to go public. South China Morning Post reports that Honor, which was spun out from Huawei’s budget smartphone business, is looking to file on the Chinese stock market, having already filed relevant paperwork with securities regulators.

xFusion aside, Huawei is still on servers

Despite spinning out xFusion, Huawei does still have its own computing hardware. The Chinese firm has been attempting to position its Ascend series of GPUs as a local alternative to Nvidia chips.

It has new Ascend AI chips set to be released annually up to 2028, with the view to doubling its compute capabilities with each launch.

Huawei even has its own rival to Nvidia’s rack-scale AI offering. The CloudMatrix 384, showcased earlier this year, looks to take on the GB200 NVL72 with a system that features more memory and bandwidth than its American counterpart.

The CloudMatrix system does, however, consume significantly more energy, approximately 559 kilowatts per hour, around four-times greater than Nvidia's servers.