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I think the moat that China has is energy costs. It's taking learnings from the Bitter Lesson. If you role up scale and compute to the next level, it's energy r
by astrobiased 29d ago
I think the moat that China has is energy costs. It's taking learnings from the Bitter Lesson. If you role up scale and compute to the next level, it's energy resources. China has it and sharing open weight models is an effective means of removing the tech moat. This idea has been floating around for a bit now (I'm not taking credit for it).
- spartacusnacho 29d agoThey also benefit from the commodification of software/knowledge work since they own manufacturing
- rgbrenner 29d agoIt's not energy costs. The US produces about 70% more electricity per capita. Chinese households do pay less than half what US households pay for electricity, but that's because the NDRC sets prices below costs for households. They make it up by charging industry more, and the industrial electricity prices in China are roughly 34% higher than in the US.
- haldujai 29d ago> The US produces about 70% more electricity per capita. And consumers use 4x as much per capita. Industrial generation per capita China comes out ~2x > industrial electricity prices in China are roughly 34% higher than in the US For which industrial customer and where? Chinese compute hubs are on par to slightly cheaper on pure electricity costs. Conversely the US makes it more expensive with interconnect and upgrade fees as well as hefty take or pay contracts. A 1GW datacenter in VA for example would add 5-10c kWh and a 12 year take or pay deal
- thinkthatover 28d agoper capita seems the wrong metric given the difference in population sizes and America's wealth. They have roughly 4x the people and have added 10x new power capacity in the last 10 years, not to mention lapping us in renewable and long distance transmission lines added.