Chinese action camera brand Insta360 faces mounting pressure from surging chip costs driven by the artificial intelligence boom, which it said is proving more challenging than US tariffs as it expands in the American market.
Demand from AI companies has squeezed the supply of components Insta360 relies on and created a “critical” situation last year, co-founder Max Richter said in an interview with Nikkei Asia.
The cost increase will be difficult to predict because it depends on how long the AI investment cycle lasts, Richter said.
“It probably has a much bigger effect than the tariffs at this moment,” he said, adding that the price of chips is presently under control.
“At this moment we very much have set up a better risk management that we can diversify our suppliers,” he said.
