Comment by tonyhart7
10 hours ago
they don't have moat in hardware either
Chinese counterpart like CXMT and Huawei is begin producing their own chip
You cant block an entire nation level effort with tariff
10 hours ago
they don't have moat in hardware either
Chinese counterpart like CXMT and Huawei is begin producing their own chip
You cant block an entire nation level effort with tariff
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).
It'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.
> 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
They also benefit from the commodification of software/knowledge work since they own manufacturing