Caroline Hyde

This is exactly what he's concerned about within China, that after the Biden administration first decided to cut off shipments of Nvidia chips into that country, the government and the companies there saw the market opportunity, they saw their own vulnerabilities, and they decided to invest very, very aggressively

in their own production technologies for chips and also AI design.

So Huawei is really the primary competitor that we have been talking about.

They have quite a bit of momentum in building these AI chips.

They've been used in a number of different places there.

CameraCon is really the second player.

It's sort of like the AMD for that market.

They're quite small at this point.

They don't have the kind of heft that

uh huawei does in particular but they are making a lot of progress so what our sources have told us is that their plans are to triple their production of ai chips into next year there'll be a a pretty significant second to huawei in supplying those chips so to the broader question about what u.s export controls do to this market as as jensen wong is talking about it certainly has opened it up for domestic production chinese companies are being told by beijing that they should buy domestic chips whenever possible

They've also turned down this idea that they're going to buy NVIDIA's H20 chips.

They don't think that those are good enough for the market.

So as Mike Shepard was talking about earlier, there may be a discussion about H200s.

But there's no putting this genie back in the bottle.

China has decided they are going to make their own chips domestically, and they're making a lot of progress.

They're making a lot of progress in designing them, but then they've got to get them spat out by SMIC.

And it feels as though ultimately the production, what you're really garnering, isn't very many.

Yeah, that's a very good point.

They are way, way behind the global standards.

There is some desperation here that if you have to produce at lower standards, you will.