this post was submitted on 04 Dec 2023
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I think it's quite clever actually.
They clearly realise that if China can't buy their chips, the CPC will put the full force of a planned economy behind making their own. Once that happens cheap Chinese AI chips will eat their lunch.
Everyone thought that would happen with Huawei. What actually happened was a whole bunch of major countries banned Huawei imports and a lot of the ones that allowed them in are having second thoughts. Germany, for example, is in the early discussion phase to remove Huawei equipment (which is already deployed) from their cell network.
Exactly. They want to maintain their insane margins with their oligopoly. The second you get a viable cheap competitor, it will all come crashing down.
Of course, it's a massive undertaking to catch up enough to be feasible. But China has the manufacturing experience, and a government initiative could allocate an insane amount of resources behind it if they were motivated to.
So it's obviously in NVidia's best interest to deter it with appeasement.
Also I assume things move much faster there unlike here where every move needs to be scrutinised and approved by 400 different people on 350 different committees.
Good point! Hadn’t thought of that