Chinese AI chipmaker's sales jump 1,774% and it turns a profit

Moore Threads, a Chinese company that designs chips for artificial intelligence, says its sales grew 1,774% in the three months through September. Revenue came to about $240 million. The company also reported a net profit of about $7.4 million for the quarter, according to Bloomberg.

What the company is

Moore Threads makes graphics chips, often called GPUs. These are the processors that power AI tools, because they can handle huge amounts of math at once. Most of the world's AI runs on chips from a small number of makers. Moore Threads is one of the Chinese companies trying to add another option.

The cluster with JD.com

The company is also building a computing cluster of 100,000 chips with JD.com, the Chinese online retailer. A cluster is a large group of chips linked together so they work as one machine. The project is meant to use only Chinese-made technology.

Who it affects

For now, this is mostly a story about China's tech industry. But a stronger home-grown chip supply could change who sells AI computing power, how much it costs and which companies businesses depend on. That matters to anyone who buys AI services, directly or through software they already use.

What is not known yet

• How the chips compare with rivals on speed and price.
• What caused the jump, beyond the strong quarter itself.
• When the JD.com cluster will be finished.
• Whether the profit can last as the company grows.

A 1,774% rise also starts from a very small base, so the percentage looks bigger than the dollar figure may suggest. The profit is small, but it is a profit.