Even in AI, USA entities are finding the competition from China really hot and taxing around the collar. Open-source AI like DeepSeek does not need to advertise to entice users and the greatest attraction is that users are at liberty to modify using them, unlike USA close-end AI that just wants users to pay for the privilege of using their system. It is a no brainer trying to debate who will win in the end.
Jensen Huang said in no uncertain terms that AI development moving forward is not totally about high-end chip dependency, and the most important factor is cheap energy. In Arizona, USA, where chip manufacturing entities are springing up, such manufacturing are competing with domestic users of water resources and energy, resulting in cost of water and energy escalating. Chip manufacturing needs plenty of water, and in an area almost resembling a desert, water is precious. Domestic consumers are paying the price by subsidizing chip manufacturing, a position they find truly ironic.
Even before the Chip War erupted, many already knew who is going to win. That the Chip War has given priority for China to invest substantial resources into the semiconductor sector is reaping massive benefits to the detriment of those investments in Arizona. Bad thoughts do not always reap good Karma. The USA does not have to believe in Karma, but many things are not working to its advantage. The tariff war is going to backfire against the USA in the coming months. Let us sit back and enjoy the fun.
Anonymous
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China is now telling Jensen Huang of Nvidia to prove that its H20 chips sold in China is secure, meaning that China is confident enough now to do away with Nvidia chips in China if proof is not forthcoming. True or not, some are talking about a kill-switch backdoor that could be detrimental for Chinese AI developers. China does not have to prove any security breaches by Nvidia, just like the USA not needing to prove that Huawei is a security threat to ban it completely earlier. Let us watch the show developing.
The USA wants to punish entities and countries using Huawei chips, which means that such Huawei chips are really competitive in performance and no pushovers to elicit such a response. In return China is paying the USA back in its own coin by going after Nvidia for a start. I think that is perfectly fair with USA claiming Huawei chips as violating USA export controls. China can use National Security Issues against Nvidia and other USA chip manufacturers doing business in China. The Chinese market is one big chip market that is important for many, including TSMC, from which Nvidia is using to make its H20 chips.
There have been warnings by some analyst about the H20 chips from Nvidia and about Nvidia wanting to continue having a strong foothold in China for nefarious reasons, knowing that AI development in China is not playing second fiddle to USA entities.
If the USA is winning, it does not have to resort to underhand tactics to stifle China. Only losers have to do that.
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