Chinese AI chip makers achieved their first profitable quarter, though supply chain and memory costs pose long-term concerns. Chinese pure-play AI chip manufacturers reached a major milestone in the third quarter, with several companies turning a profit. Domestic GPU developers, including Moore Threads, MetaX, and Iluvatar CoreX, are actively filling the market vacuum left by NVIDIA's high-end processors due to U.S. export controls, engaging in fierce competition for market share among domestic enterprise clients and cloud service providers. However, severe supply chain disruptions and high memory costs pose hidden risks to their long-term growth prospects.