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Chinese GPU maker Moore Threads swings to Q1 profit
Moore Threads Technology posted a net profit of 29.4 million yuan (US$4.3 million) in the first quarter of 2026.
The company said quarterly revenue rose 155% year on year to 737.6 million yuan (US$108 million).
Moore Threads said 2025 revenue tripled to 1.5 billion yuan (US$219 million) while its net loss narrowed 36.7% to 1 billion yuan (US$149 million).
It disclosed a 660 million yuan (US$96.6 million) order in March for its KUAE computing cluster from a client.
🔗 Source: South China Morning Post
🧠 Food for thought
Implications, context, and why it matters.
Profitability came after an IPO driven by expectations
- Before its December 2025 initial public offering (IPO), Moore Threads had piled up nearly 6 billion yuan (US$840 million) in losses over three years. It also held about 1% of China’s AI accelerator market in 2024 1.
- Even so, the company debuted with a market capitalization of 305.5 billion yuan (US$42.8 billion). Investors backed the idea of it as “China’s Nvidia” and weighed founder and actual controller Zhang Jianzhong’s 15-year stint as an Nvidia global vice president 1.
- Its finances improved over that period. Gross margin rose from -70% in 2022 to 61.9% by the third quarter of 2025 1.
The business now reaches beyond chips into computing systems
- The 660 million yuan (US$96.6 million) order covered the company’s KUAE intelligent computing cluster, a bundled AI computing system, rather than only standalone graphics processing units (GPUs) 2.
- The deal marks a move away from selling standalone GPUs toward supplying larger AI computing infrastructure. That can lift contract values and make adoption easier for customers 3.
- This approach fits China’s self-sufficiency push. It suggests a domestic company can supply a broader AI infrastructure solution and reduce reliance on foreign rivals 1.
- It may also raise the bar for other Chinese AI chip startups. Those companies could face pressure to offer more integrated systems when chasing large enterprise contracts 1.
