China's 'Four Little Dragons' GPU Firms Pivot From Venture Growth to Profitability
Moore Threads, MetaX, Biren, and Iluvatar CoreX scale revenues as domestic substitution efforts accelerate.
China's leading GPU startups are transitioning from venture-backed growth to the scrutiny of public markets. The group, known as the 'Four Little Dragons,' is aggressively pursuing domestic substitution to replace foreign AI hardware amid ongoing US export restrictions.
Financial results for the first half of 2026 reveal a divergence in strategic outcomes. Moore Threads led the group in scale, reporting the highest revenue at 1.736 billion yuan. Biren Technology recorded the most aggressive growth, with revenue increasing nearly 20-fold to approximately 1.2 billion yuan. Meanwhile, MetaX (Muxi) and Iluvatar CoreX (Tianshu) have successfully swung into the black.
MetaX achieved a net profit of 612 million yuan in H1, a sharp reversal from the 186 million yuan loss it posted the previous year. Iluvatar CoreX reported a net profit of 106.3 million yuan, supported by revenue of 945.7 million yuan, which nearly tripled from 324.3 million yuan. This financial shift occurs as the Chinese semiconductor industry faces intense pressure to develop independent alternatives to NVIDIA and AMD.
The 'Four Little Dragons' represent distinct architectural and business strategies. Some firms have prioritized a platform strategy to build full-function ecosystems, while others have focused on engineering efficiency to enable rapid commercialization within AI computing clusters. This competition is no longer just about technical viability but about which domestic architecture can scale effectively across China's AI infrastructure.
The transition to public markets has resulted in massive valuations for the sector's leaders. Moore Threads listed on the Sci-Tech Innovation Board (STAR Market) with a market value exceeding 300 billion yuan. MetaX also achieved a significant market valuation, reported near 280 billion RMB, after reaching single-quarter profitability in the second quarter of 2025. The ability of these firms to scale revenue while narrowing losses—or achieving outright profitability—signals a maturing independent GPU ecosystem in China.
As these companies move from 'stories of domestic substitution' to actual financial performance, the industry is watching to see which firm can maintain its lead in R&D while sustaining profitability. While Moore Threads currently holds the revenue lead and Biren shows the fastest growth, the ability of MetaX and Iluvatar to generate profit suggests a sustainable path for domestic hardware. The next phase of development will likely center on whether these architectures can maintain performance parity with global leaders as AI workloads become more complex.