US chip export restrictions may actually be an advantage for China's AI Infrastructure. Chinese companies are forced to speed up developing their own AI chips
China themselves recognize this. After Trump relaxed sanctions and allowed NVIDIA H200 sales to China on a case by case basis, the Chinese government stepped in to essentially block it!
In addition to Huawei who make the Ascend series that Ziphu are using, there are also at least a half dozen or so other Chinese companies also making their own AI accelerators.
And this wouldn't have happened if we had tried to get them to buy our hardware rather than trying to gatekeep. Protectionism never works in the long term.
US companies should now be more worried about Chinese companies flooding the market with their, hopefully, very affordable GPU's. The scale at which they can manufacture stuff is unmatched anywhere else. Nvidia can kiss goodbye to their 75%+ profit margins.
Almost everyone knew that these sanctions would backfire within a few years. You can't really put sanctions that have noticeable negative effects on bigger economies. They only work for small to medium economies. I believe sanctions on any economy in top 10 would fail.
China is gated by not having EUV machine access. They're also bottlenecked by ASML's DUV machine production like everyone else. There are already talks of banning China from even purchasing DUV machines from ASML.
So until China solves the ASML problem, there won't be any flooding.
zicohacks · · focus · HN ↗
HarHarVeryFunny · · focus · HN ↗
In addition to Huawei who make the Ascend series that Ziphu are using, there are also at least a half dozen or so other Chinese companies also making their own AI accelerators.
0xbadcafebee · · focus · HN ↗
freakynit · · focus · HN ↗
Almost everyone knew that these sanctions would backfire within a few years. You can't really put sanctions that have noticeable negative effects on bigger economies. They only work for small to medium economies. I believe sanctions on any economy in top 10 would fail.
aurareturn · · focus · HN ↗
So until China solves the ASML problem, there won't be any flooding.
HarHarVeryFunny · · focus · HN ↗
A bit late for that now that they are moving into early production with their own.