Shengshu Technology, the company behind the Vidu AI video generation platform, is considering a Hong Kong IPO that could launch as early as next year and raise more than $500 million, according to market sources. The company has begun working with CICC and CITIC Securities on possible underwriting arrangements, though the fundraising size and timetable remain subject to market conditions. Founded in March 2023 and led by Tsinghua University professor Zhu Jun, Shengshu has emerged as one of China’s closely watched AI video startups. Its Vidu model, described as China’s first fully self-developed AI video generation model, is used in advertising, animation and film production. The company competes with major technology groups including ByteDance, Alibaba and Kuaishou, as well as startups such as PixVerse, in a market where Chinese players are pushing to gain share. Shengshu’s investor base includes Alibaba Cloud, Baidu and government-linked capital. In April, it completed a nearly RMB 2 billion Series B round led by Alibaba Cloud, with participation from China Internet Investment Fund, Jiuan Haitang, TAL Education and Photon Fund. Earlier investors included Qiming Venture Partners and a Beijing municipal government fund. In July, Zhu Jun introduced Vidu S1, a next-generation model built for real-time interactive use cases including live video calls and voice-controlled video direction. A successful listing would extend Hong Kong’s roster of Chinese AI flotations, though the company would still face the broader challenge of turning early demand for AI video generation into a sustainable profit model.