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The export controls made it difficult for Chinese companies to acquire large numbers of GPUs, which prevented them from expanding business models that rely on b
by yorwba 1y ago
The export controls made it difficult for Chinese companies to acquire large numbers of GPUs, which prevented them from expanding business models that rely on buying more GPUs to serve more customers, which means that Chinese companies have much, much lower budgets for GPU procurement than their American counterparts. https://chinai.substack.com/p/chinai-323-the-ai-deflation-of-chinas https://chinai.substack.com/p/chinai-323-the-ai-deflation-of...
So a new homegrown chip would have to capture a very large share of this relatively small market to make significant volume. That makes it rather risky for profit-driven investors.
Politically directed investment probably increased, but in the end the private sector also needs to be on board.
- rapsey 1y agoThe market size for chinese chips is much like EVs. The entire world outside of the US. Like I said, Chinese dominance is inevitable.
- yorwba 1y agoMost of the rest of the world can buy Nvidia if they want to. And I don't think the EV comparison works, since China already had a large domestic market and established ICE car companies who could afford to electrify some of their lineup and slowly gain market share this way.
- rapsey 1y agoThat is not at all the case. Biden export controls for nvida chips are still in place. China also has a large domestic market for chips. The rest of the world would gladly buy competitive Chinese chips.