The Rise of China's AI Billionaire: How US Chip Curbs Helped Chen Tianshi Build a Fortune
Chen Tianshi, the co-founder of Cambricon Technologies, has become one of the world's wealthiest self-made billionaires, largely due to the US decision to cut off China's access to cutting-edge chips and Beijing's aim to boost domestic technology. This sudden shift in the market has provided government backing and a protected market for the AI chip manufacturer, enabling him to surge in wealth.
Cambricon Technologies' share price has surged by over 765% in the past 24 months, with Chen's wealth more than doubling to $22.5 billion since the beginning of this year. This growth highlights China's support for its domestic AI industry, creating a new set of state-aligned tech elites.
However, concerns have been raised over whether Cambricon's surge is due to government protectionism or the competitiveness of its chips. Shen Meng, director at Beijing-based investment bank Chanson & Co, told Bloomberg News that Cambricon's explosive revenue growth is mainly due to a low starting point, and its current valuation may be inflated without sustained policy support.
Despite these concerns, Chen's journey to success has become a notable example of China's state-backed academic pipeline, which has also contributed to the unexpected breakthrough of AI startup DeepSeek and its young founder, Liang Wenfeng. Cambricon was listed on the Shanghai Sci-Tech Innovation Board in 2020, but it remained in the red until it started reporting quarterly profits for the first time since its IPO in the three months ending December 2024.
The US restrictions on Cambricon have had a limited impact on its outlook. When Washington expanded the export controls to prevent Nvidia and AMD from selling any high-performance AI chips to China, it created a supply gap. Beijing responded strongly, requiring domestic tech firms to 'buy local,' meaning Chinese companies now must source at least some of their chips from domestic manufacturers like Huawei or Cambricon.
With the rising demand, Cambricon's revenue soared more than 500% over the past 12 months, despite facing competition from Huawei and a slew of other domestic startups. However, questions have been raised over Cambricon's valuation, with Sunny Cheung, a researcher at Washington-based think tank Jamestown Foundation, stating that it's too early to say if Cambricon or Huawei will become China's Nvidia.
Despite these concerns, Chen's success story highlights the potential for China's domestic AI industry to thrive, even in the face of US export restrictions. As the world's third richest person under 40, Chen's story is a testament to the power of government support and the potential for innovation in the face of adversity.
