With hundreds of billions of dollars at stake, numerous new entrants are joining in the race, further eroding Nvidia’s dominance in the long run. One outcome is certain – Nvidia will be locked out of the Chinese chip market, the largest in the world, and Chinese companies will have the market for itself.
China is set to build a completely separate and parallel AI system from the US. The China system may still lag in compute performance for now but has zero dependence on the US.
Once the system scales and matures at the application level, we can expect Chinese AI will compete with the best AI players from the US in the global markets. Much like the EV industry today.
The short-sighted belligerence of the US regime has successfully undermined the dominance of its own tech champion, very much the opposite story of how Beijing has groomed China’s dominance in the rare earth industry.
Washington has found its belligerence against China blown up in its face repeatedly –
It takes two to tango. The arrogant and ignorant Washington operatives have always assumed their belligerence is never reciprocated and no one dares to punch back at the bully. Maybe they are right when it comes to its subservient vassals in Europe, Japan, South Korea and the 5 eyes Anglo sphere.
But they have met their rival. China won’t succumb to Washington’s coercion or Trump’s “charm”. Instead, it will hit the delete button.
