ATP Weekly Tech Insights
Issue #163 — China's Memory Boom, AI Chip War & OpenAI Under Pressure
This week: Longsys posts a 74,000% profit surge riding the AI memory upcycle, a new Chinese chip startup bets on 3D stacking to bypass US controls, MiniMax's founder pledges to forgo his salary until AGI, Apple sues OpenAI for trade secret theft, thieves target AI data center construction sites, New York bans smart glasses from all courthouses, and an analyst warns OpenAI could run dry by mid-2027.
China Focus
01 / Hardware & Memory
China's Longsys Forecasts 600-Fold Profit Surge as Memory Boom Drives 74,000% Growth
Shenzhen Longsys Electronics, one of China's largest memory module makers, expects first-half net profit to soar between 9.2 billion and 11 billion yuan — up from just 14.8 million yuan a year ago, representing growth of up to 74,394%. Revenue is projected to hit 22–25 billion yuan, more than double the prior year. The staggering surge reflects a global memory-chip upcycle fueled by AI infrastructure demand, with Longsys positioned as a direct beneficiary of enterprise and data center buildout across China and beyond.
02 / Semiconductors
Chinese AI Chip Startup Dongfang Suanxin Emerges, Bets on 3D Stacking to Dodge US Controls
Dongfang Suanxin, a Chinese AI chip startup led by semiconductor industry veteran Wei Shaojun, has emerged from stealth mode after two years of quiet development. The company is joining Huawei in betting on advanced 3D chip stacking technology to circumvent US export controls restricting China's access to cutting-edge semiconductors. Wei, who also serves as vice-president of the China Semiconductor Industry Association, sees 3D integration as a viable path to competitive performance without relying on restricted lithography nodes — a strategy with significant implications for the global chip supply chain.
03 / Artificial Intelligence
MiniMax CEO Forgoes Salary Until AGI as Stock Crashes 80% Amid $2 Billion Fundraising
MiniMax founder Yan Junjie has pledged to work without salary until artificial general intelligence is achieved, while redistributing 5% of his personal shares to employees and open-source developers. The dramatic gesture comes as the Chinese AI firm's stock plummeted 80% from its March peak following a lock-up expiry, with shares sliding another 18% in a single week. MiniMax is now raising $2 billion through convertible bonds in a bid to stabilize its finances and fund continued model development — a move that underscores the volatile economics facing China's second tier of AI labs.
Around the World
04 / Big Tech
Apple Sues OpenAI for Trade Secret Theft, Alleging Hardware Chief Poached Secrets from Former Employees
Apple has sued OpenAI in federal court, accusing the AI lab of stealing trade secrets to develop its own consumer hardware — a stunning reversal from their 2024 partnership integrating ChatGPT into iPhones. Apple alleges OpenAI hardware chief Tang Tan, a former Apple VP, directed job candidates to bring "actual parts" to interviews for "show and tell" sessions, and coached departing employees to evade Apple's data-protection protocols. The lawsuit signals a significant deterioration in what was once a high-profile strategic alliance, and raises questions about OpenAI's ambitions to compete in the device market.
05 / Infrastructure
Thieves Steal $1.3 Million in Copper and Equipment from AI Data Center Construction Sites
The AI data center boom has spawned a lucrative criminal niche, with thieves targeting construction sites for copper wire and infrastructure equipment. Investigators recently recovered two stolen trailers near Chicago containing $1.3 million in supplies, including $300,000 in copper from Alabama and $1 million in gear from Florida. The thefts exploit the massive material shipments required for hyperscale data center buildouts, which often span hundreds of acres with limited on-site security. Law enforcement agencies are now treating AI infrastructure theft as an emerging organized crime category.
06 / Regulation
New York Becomes First US State to Ban Smart Glasses in All 1,240 Courthouses
New York will enforce a blanket ban on all camera-equipped smart glasses across its 1,240 state and local courts starting July 20, making it the first state to implement a statewide prohibition. The ban covers all eyewear with recording capabilities — including prescription smart glasses — requiring visitors to surrender devices to court officers before entry. The move follows a February incident where Meta's Ray-Ban glasses were used to covertly identify individuals in public, raising biometric privacy concerns that courts are now acting on ahead of broader federal regulation.
07 / Artificial Intelligence
Analyst Warns OpenAI Could Run Out of Cash by Mid-2027 Despite $40 Billion Funding
Analyst Sebastian Mallaby predicts OpenAI could exhaust its cash reserves within 18 months, as the company burns through projected losses of $8 billion in 2025 and $40 billion cumulatively by 2028 — with profitability not targeted until 2030. Sam Altman's $1.4 trillion data center ambition and the industry's estimated $800 billion funding gap compound the pressure. Unlike legacy tech giants with established revenue streams, OpenAI is simultaneously racing to build proprietary hardware, expand model capabilities, and fend off commoditization from open-source competitors, all while its subscription economics remain structurally challenged.
