{
  "id": 6727624,
  "title": "Chinese chipmakers become billionaires without turning a profit",
  "url": "https://urgent.news/2026/09/11/chinese-chipmakers-become-billionaires-without-turning-a-profit",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-11T08:09:23.000Z",
  "source": {
    "name": "The Business Times - Companies & Markets",
    "slug": "the-business-times-companies-markets",
    "url": "https://www.businesstimes.com.sg/startups-tech/technology/chinese-chipmakers-become-billionaires-without-turning-profit"
  },
  "original_language": "en",
  "account": "Shanghai Enflame Technology, a Chinese computer chip manufacturer, has managed to become billionaires without turning a profit. The company, founded by Zhao Lidong and Zhang Yalin in 2018, has fewer than 900 employees and only one major customer. Despite having never turned a profit, the founders have become billionaires as investors pour money into AI-related ventures. Tencent, the biggest shareholder and client, holds a 20% stake in the firm, contributing nearly 84% of Enflame's 990 million yuan ($138 million) in revenue in 2025. Enflame's shares surged by as much as 234% on their first day of trading in Shanghai, bringing Zhao and Zhang's individual fortunes to US$2.5 billion each. The company's founders, who previously worked at AMD, sought to avoid direct competition with Nvidia by developing an alternative type of chip. However, their strategy has been met with challenges such as supply chain bottlenecks, competition from global rivals like Nvidia, and geopolitical uncertainties. Despite posting a net loss of 1.16 billion yuan ($160 million) in 2025, Enflame continues to rely on Chinese state-backed computing projects for revenue.",
  "summary": "Shanghai Enflame Technology founders become billionaires as investors hungry for AI bets pour money into firm",
  "key_points": [
    "Shanghai Enflame Technology becomes billionaires without profit.",
    "Tencent owns 20% stake, contributes 84% of revenue.",
    "Founders, former AMD employees, face supply chain challenges."
  ],
  "editors_take": "The founders' billionaire status reflects investors' high hopes for AI-related ventures, despite the company's unproven profitability and reliance on a single major customer for nearly all its revenue.",
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Yahoo Finance",
        "title": "Chinese Chipmakers Become Billionaires Without Turning a Profit",
        "url": "https://urgent.news/2026/09/11/chinese-chipmakers-become-billionaires-without-turning-a-profit-6901623",
        "published": "2026-09-11T06:51:47.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}