DataCanvas, a Beijing-based company known for AI software in 2023, has nearly abandoned that core business to become a major player in computing infrastructure services, dramatically increasing revenue and filing for a Hong Kong IPO in 2026.
- AI software revenue dropped from 76.5% in 2023 to 0.1% in 2026
- Infrastructure business revenue surged to over RMB1 billion in 2025
- DataCanvas filed for a Hong Kong IPO with new business model front and center
What happened
DataCanvas, established in 2013 to provide AI software tools that help enterprises build and deploy machine-learning models, has undergone a significant strategic shift since 2023. Initially generating 76.5% of its revenue from AI foundational software, the company steadily reduced this business. By the first half of 2026, AI software contributed only 0.1% of revenue, with total software service revenue collapsing from RMB81.3 million to less than RMB500,000.
In parallel, DataCanvas expanded aggressively into computing infrastructure services, focusing on assembling, integrating, and managing hardware and cloud environments necessary for AI workloads. This transition led to explosive growth in infrastructure revenue—from RMB24.9 million in 2023 to over RMB1 billion by 2025, representing 91.2% of total revenue. The company formally filed for a public listing in Hong Kong in late September 2026, highlighting this new business focus.
Why it matters
DataCanvas’s transformation illustrates a broader trend in China’s AI and cloud technology sectors, where the challenge of scaling large AI models has shifted business opportunity from software development to the underlying computing infrastructure. As demand for more sophisticated hardware orchestration rises, companies that can provide integrated infrastructure solutions are capturing outsized growth and market relevance.
For investors and enterprise clients, the company’s pivot signals a mature understanding of the AI services value chain. By controlling infrastructure instead of just software tools, DataCanvas can better meet client needs for reliable, scalable environments capable of supporting complex AI workloads—offering competitive differentiation in a rapidly evolving market landscape.
What to watch next
Market watchers should closely follow DataCanvas’s listing progress in Hong Kong, as the IPO will be a key indicator of investor appetite for infrastructure-focused AI companies in China. The company’s ability to sustain rapid revenue growth beyond 2025, scale operations, and capture new enterprise clients will also be critical to its success.
Additionally, monitoring how DataCanvas balances expanding cloud services with hardware integration will reveal if it can maintain a competitive edge. The company’s future initiatives around cloud capacity access, partnerships, or potential diversification into adjacent AI infrastructure domains could define its leadership position in China’s evolving AI ecosystem.