Starting low on "yes" as David Sacks statements reveal he's a "no" on export controls -
"There was major news from China in the AI race this week: 1. Huawei introduced a new AI chip to compete with Nvidia. 2. The Chinese government instructed Chinese companies to stop buying certain Nvidia AI chips,” Sacks said in a Sept. 18 X posting. "Taken together,” he wrote, “the message is clear: China is not desperate for our chips. It is producing its own, and intends to compete globally in the semiconductor market. Nvidia still has a substantial lead, according to most analysts, but Huawei is using its networking prowess to remain competitive." - David Sacks
Nvidia stock has tanked this past week, and is potentially feeling the pinch. "Nvidia was the heaviest weight on the market after the chip company lost 4.7%. Other AI darlings also struggled, including drops of 7.6% for Super Micro Computer, 6.6% for Palantir Technologies and 4.7% for Broadcom. "
However, this drop in AI companies' stock prices could be overdue as the AI market increased at a rapid pace and now the bubble has burst. "Such sensational performances have been one of the top reasons the U.S. market has hit records despite a slowing job market and high inflation. AI stock prices have shot so high, though, that they’re also drawing comparisons to the 2000 dot-com bubble which ultimately burst and dragged the S&P 500 down by nearly half."
Innovation and increase of AI learning is of utmost importance to the USA, in the AI race with China. The fear is China may be winning the innovation race.
"In particular,” Sacks wrote, “Huawei compensates for weaker individual chips by clustering more chips together. It’s time for Washington to update its assumptions with regard to export controls. American chip companies must be allowed to sell the American technology stack abroad, albeit with security requirements, else we forfeit the AI race to China.” (again) David Sacks
"Fortune reported Sept. 18 on Chinese tech giant Huawei’s plans to ramp up production and cluster its advanced AI chips. According to other news reports last week, Chinese regulators instructed domestic companies not to buy NVIDIA’s AI chips."
HOWEVER - "President Trump made clear earlier this month that he doesn’t want Nvidia selling its most advanced artificial-intelligence chips to China." Yet, China got them anyway - through a data center in Indonesia. "Some former and current U.S. national-security officials say the U.S. should review deals such as the Jakarta one. Nvidia NVDA -3.58%decrease; red down pointing triangle and other tech companies argue for fewer export controls, saying it is better to have the rest of the world hooked on American technology and financing American innovation."
It's pretty foggy about what the USA will do as far as export controls when big deals are on the line. If there is a way for the Trump administration to curtail the most cutting , advanced AI designs to China - without heightened export controls, that's probably what will occur.
Why do you think you're right?
Dropping the "yes" forecast as RSF may be halted due to increased international condemnation. If they do arrive in Khartoum in order to take control of the city - there may be further outrage.
Why might you be wrong?
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