# 01.ai prepares for Hong Kong IPO Kai-Fu Lee's company pivoted from AI models to data infrastructure. - **Source:** [The Next Web](https://brifing.si/source/afe24b20-b275-4c19-b9a6-8bb3c8babae7) - **Published:** 2026-07-20 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/8991c05c-2cd5-42c9-810e-eb20e143be8a ## Strategic Pivot 01.ai was initially founded to develop AI models but changed its business model due to industry competition. The company now customizes existing open-source models to offer enterprise data infrastructure. This move reduced costs while creating a new market opportunity. ## Boss AI Product Kai-Fu Lee's product called 'Boss AI' organizes clients' scattered data pools enabling instant querying and visualization. The product offers on-premise solutions instead of cloud, addressing data security needs. This approach particularly appeals to institutions handling sensitive data. ## Global Market About half of 01.ai's business comes from outside China. Operating in Asia, Europe and South America, the company ruled out entering the US market. Lee explained this decision citing US customers' wariness of Chinese software as a strategic consideration. ## Competition and Valuation 01.ai is among China's 'AI Tigers'. While competitors Z.AI and MiniMax are already listed in Hong Kong, Moonshot prepares for IPO at $30B valuation. How the market will respond to 01.ai's different business model remains a key question. ## Financial Plans The company will conduct another funding round ahead of its planned 2027 Hong Kong IPO. Lee stated this round would close around the time of 01.ai's first annual results announcement. Dismantling offshore structures also stands out as a crucial IPO preparation step. ## Industry Turning Point 01.ai's story reflects economic realities in the AI sector. Lee admits few companies with unlimited budgets can afford training models from scratch. This pivot serves as an important example for other startups navigating similar challenges. ## Sources covering this story - https://thenextweb.com/news/01ai-kai-fu-lee-hong-kong-ipo-2027-palantir-china — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._