In AI, its not just the chip but the speed of interconnections between chips and memory. Here, Huawei seems to have used clever engineering to overcome the advantage of Nvidia. In addition, the Chinese AI models seem to be better designed for less compute intensity. So I would say draw there.
The semi-conductor equipment is an issue for China, but its not really a US but rather a West advantage with ASML etc. But only the most advanced chips which are a small amount of the market are affected. In the rest of the market the Chinese manufacturers are rapidly driving down costs, and therefore Western company revenues. Also, many times a slightly less efficient setup can be used instead of the leading edge chips. China will blow this advantage away within 5-10 years tops.
So really advantage China, especially when the lack of critical minerals will cripple Western industries. They should be patient while the US sweat it out and in the end TACO with an offer the Chinese find reasonable.
"American AI chips, specifically Nvidia ones, still have clear advantages over alternative Chinese products."
Of course this is true now, but since the Geneva talks the US has banned use of Huawei's Ascend AI chips globally, saying that it's "likely" that they were developed or produced in violation of US export controls.
They are "thought to" employ US technology.
China's right: the US is using "erroneous practices".
I don't understand why the US doesn't use all of the tools available to it. Why just tariffs? Why not taxes on capital flows? Much better tool for strategic disengagement.
Peace Friendship…..!
In AI, its not just the chip but the speed of interconnections between chips and memory. Here, Huawei seems to have used clever engineering to overcome the advantage of Nvidia. In addition, the Chinese AI models seem to be better designed for less compute intensity. So I would say draw there.
The semi-conductor equipment is an issue for China, but its not really a US but rather a West advantage with ASML etc. But only the most advanced chips which are a small amount of the market are affected. In the rest of the market the Chinese manufacturers are rapidly driving down costs, and therefore Western company revenues. Also, many times a slightly less efficient setup can be used instead of the leading edge chips. China will blow this advantage away within 5-10 years tops.
So really advantage China, especially when the lack of critical minerals will cripple Western industries. They should be patient while the US sweat it out and in the end TACO with an offer the Chinese find reasonable.
"American AI chips, specifically Nvidia ones, still have clear advantages over alternative Chinese products."
Of course this is true now, but since the Geneva talks the US has banned use of Huawei's Ascend AI chips globally, saying that it's "likely" that they were developed or produced in violation of US export controls.
They are "thought to" employ US technology.
China's right: the US is using "erroneous practices".
The US is not agreement capable...
I don't understand why the US doesn't use all of the tools available to it. Why just tariffs? Why not taxes on capital flows? Much better tool for strategic disengagement.
https://www.linkedin.com/posts/perryboyle_decoupling-china-tariffs-activity-7337573096272338944-OsoO?utm_source=share&utm_medium=member_desktop&rcm=ACoAAAA9TfMBfA3mj2PPMU1DbcvF6--8DOcxn00