Cambricon Technologies Corp. swung to a record profit in the first half, reflecting a wave of demand for Chinese chips after Beijing encouraged the use of homegrown technology in a post-DeepSeek AI boom.

The Chinese AI chip designer, which competes with Huawei Technologies Co. to provide accelerators for developing and hosting AI models, posted a 1.03 billion yuan profit ($144 million) versus a year-earlier loss of 533 million yuan. That’s off a roughly 44-fold surge in revenue to 2.9 billion yuan. Its shares climbed more than 8% in Shanghai.

The results underscore how startups and big tech firms like Alibaba Group Holding Ltd. are increasingly employing domestic alternatives to Nvidia Corp. as the pace of AI development intensifies. The Chinese authorities have urged local agencies

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