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 has provided government backing and a protected market for the AI chip manufacturer, enabling him to soar in wealth.
Over the past 24 months, Cambricon Technologies’ shares have surged by more than 765%, with Chen’s wealth doubling to $22.5 billion since the beginning of this year, according to the Bloomberg Billionaires Index. 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 about whether Cambricon’s surge is due to government protectionism or the competitiveness of its chips, leading to uncertainty about the longevity of this growth. Despite these questions, Chen’s journey to success has become a notable example of China’s state-backed academic pipeline, contributing 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. In 2022, the US Department of Commerce placed Cambricon on the entity list due to its attempts to acquire US-origin items in support of China’s military modernization, which restricted the company’s access to advanced Western technologies.
Despite these challenges, the US restrictions had a limited impact on Cambricon’s 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. This surge is directly caused by the urgent need for countries to have access to hardware infrastructure, similar to Nvidia. However, the company’s stock price is likely to encounter a lot of variance as people decide exactly how much infrastructure is required for practically useful generative AI models, and how much those expectations have been overhyped.
In conclusion, Chen Tianshi’s success story highlights the impact of US chip curbs and China’s domestic technology push on the country’s AI industry. While concerns remain about the sustainability of Cambricon’s growth, the company’s rapid rise showcases the potential for state-backed academic pipelines to drive innovation and success in the tech sector.