Caroline Hyde

But what do you hear from your perspective as to how far along China really is with its domestic chip manufacturing and use?

Well, obviously, US and US technology is ahead of China.

What China is good at doing is basically to find the chips to manufacture chips in order to serve their own needs and serve the basic AI needs.

China is generally better in transforming their AI investments into real revenue, whereas the U.S.

is this prestige technology hub that's really aiming for the best.

But even from the European perspective, where we could be a little bit more neutral, well, U.S.

is allies, first of all, and U.S.

is well ahead from a technology perspective than China.

then China is clearly coming.

And the fact that these chip restrictions have hit the Chinese technology sector means that they will be accelerating their efforts and do anything in their power to catch the U.S.

technology.

It really has been a mounting concern from some of these tech leaders that perhaps we're underestimating how sophisticated China is.

Is the market underestimating

how superior TPUs are, how other chips are being manufactured by big tech players for their own inference.

How much do we need to bake that into the NVIDIA story?

Well, I think that, well, TPUs are interesting, but they are actually serving in one particular area, and that's AI.

Obviously, the fact that Google is now out there and commercializing TPUs is a negative risk, is a negative factor for NVIDIA.

It is a risk in the sense that for those companies who are looking only for their AI applications, they would find it cheaper to

and as efficient as buying NVIDIA's GPUs.

But at the end of the day, NVIDIA is not only selling chips, they're also selling the ecosystem that comes with it.