Alice Han

What I think people have realized with DeepSeek, and it goes to people like Marc Andreessen and even clients that I advise, is that China has created an alternative ecosystem for the hardware and software. The stack is completely produced in China because of the tariffs and sanctions that have been put into place since the Trump administration.

What I think people have realized with DeepSeek, and it goes to people like Marc Andreessen and even clients that I advise, is that China has created an alternative ecosystem for the hardware and software. The stack is completely produced in China because of the tariffs and sanctions that have been put into place since the Trump administration.

And what was surprising about DeepSeek, not only was it 27 times cheaper, apparently the R1 model was 27 times cheaper, that open AI was the fact that they were able to produce this mainly internally, but also using low-end chips from the video.

And what was surprising about DeepSeek, not only was it 27 times cheaper, apparently the R1 model was 27 times cheaper, that open AI was the fact that they were able to produce this mainly internally, but also using low-end chips from the video.

And what was surprising about DeepSeek, not only was it 27 times cheaper, apparently the R1 model was 27 times cheaper, that open AI was the fact that they were able to produce this mainly internally, but also using low-end chips from the video.

The H20s that the Trump and Biden administration didn't think to impose export controls on, effectively allowed China to bootstrap their way to a competitive AI ecosystem and model. Alibaba has produced one recently that was also extremely competitive.

The H20s that the Trump and Biden administration didn't think to impose export controls on, effectively allowed China to bootstrap their way to a competitive AI ecosystem and model. Alibaba has produced one recently that was also extremely competitive.

The H20s that the Trump and Biden administration didn't think to impose export controls on, effectively allowed China to bootstrap their way to a competitive AI ecosystem and model. Alibaba has produced one recently that was also extremely competitive.

So this is a landscape in which the US, I don't think, is entirely prepared for because they thought that export controls, especially on hardware, would effectively kneecap China on AI. But there's been a bit of a wake-up call. I think it was right to call it a Sputnik moment.

So this is a landscape in which the US, I don't think, is entirely prepared for because they thought that export controls, especially on hardware, would effectively kneecap China on AI. But there's been a bit of a wake-up call. I think it was right to call it a Sputnik moment.

So this is a landscape in which the US, I don't think, is entirely prepared for because they thought that export controls, especially on hardware, would effectively kneecap China on AI. But there's been a bit of a wake-up call. I think it was right to call it a Sputnik moment.

There was a wake-up call over the last few weeks in which investors, the broader tech community in the US, really figured out that something was happening in China. And I would continue to watch the space, watch somebody like Kai-Fu Lee, who's been the father of modern AI in China, He I met him last year.

There was a wake-up call over the last few weeks in which investors, the broader tech community in the US, really figured out that something was happening in China. And I would continue to watch the space, watch somebody like Kai-Fu Lee, who's been the father of modern AI in China, He I met him last year.

There was a wake-up call over the last few weeks in which investors, the broader tech community in the US, really figured out that something was happening in China. And I would continue to watch the space, watch somebody like Kai-Fu Lee, who's been the father of modern AI in China, He I met him last year.

He was saying that China will be very competitive in driving down inference and training costs because of the scalability and ecosystem. And I think that's being borne out right now.

He was saying that China will be very competitive in driving down inference and training costs because of the scalability and ecosystem. And I think that's being borne out right now.

He was saying that China will be very competitive in driving down inference and training costs because of the scalability and ecosystem. And I think that's being borne out right now.

I think it's a bit of a mixed bag. I do think a lot of American companies have been hurt by obviously geopolitical risk, but also just China demand going down. It's not just these companies that you cited. Luxury brands have been suffering a great deal as well. I mean, we haven't even talked about automobiles.

I think it's a bit of a mixed bag. I do think a lot of American companies have been hurt by obviously geopolitical risk, but also just China demand going down. It's not just these companies that you cited. Luxury brands have been suffering a great deal as well. I mean, we haven't even talked about automobiles.

I think it's a bit of a mixed bag. I do think a lot of American companies have been hurt by obviously geopolitical risk, but also just China demand going down. It's not just these companies that you cited. Luxury brands have been suffering a great deal as well. I mean, we haven't even talked about automobiles.