Insta360's Memory Chip Spending and GoPro's Acquisition
Insta360 spent $298m on memory chips in six months. GoPro’s shareholders are receiving $285m in cash for the entire company.
Insta360 opened its first American store in Times Square on Saturday, its second self-operated shop outside China. The ribbon-cutting ceremony is just one part of a larger story.
As previously mentioned, Insta360 absorbed the impact of AI data center demand on consumer memory prices, staying barely profitable with a 94% drop in half-year net profit while revenue rose 50%.
In contrast, GoPro struggled to absorb the same shock. It cited memory price rises of 80% to 115%, a 26% revenue decline and expected covenant breaches, leading to staff cuts and a search for a buyer. The difference? Insta360's stronger balance sheet.
The memory crunch is acting as a sorting mechanism, favoring companies with the financial flexibility to weather input cost inflation.
GoPro’s acquisition by Starman Optical, while providing some relief from debt, ultimately results in its exit from the consumer camera market and a repositioning towards AI data center, government, defense, and aerospace markets - the very sector that starved it of affordable memory.
The other major player in the industry, DJI, is also facing challenges. Added to the FCC's covered list in December 2025, DJI has been unable to get new product approvals due to an incomplete security audit. The freeze compounds with each product cycle they cannot ship into.
The FCC has even proposed pulling some of DJI’s already approved drones, reaching by capability into thermal imaging, LiDAR, and other advanced technologies.