David Sachs

I mean, China is developing its own models.

Obviously, about a year ago, you had the deep seek moment where you had a powerful model released by deep seek.

And I think that kind of put Chinese AI on the map in a way.

I think people in the West didn't realize in a way how good China was at producing models.

And there was a little bit of complacency towards our relative position.

People weren't really talking about the global competition model.

two years ago.

It wasn't really discussed at all.

I remember when the Biden administration created this 100-page Biden executive order regulating AI.

No one was talking about whether all this regulation would slow us down vis-a-vis China.

It wasn't even part of the conversation.

Then DeepSeek launched, and I think we did realize we're in a global competition and we have to win, and that's why we have to actually be quite careful about how we regulate this and make sure we're not over-regulating it.

But

I think China definitely wants to compete.

There have been some stories recently, I think Bloomberg and Reuters reported that they actually are not allowing Nvidia chips into their country.

And the reason for that, we think, is that they want to indigenize chip production.

They want to stand up Huawei as their national champion.

And effectively, they're creating a market subsidy for Huawei by keeping out the competition.

So they're protecting their market to stand up Huawei.

And I think their plan would be to have Huawei dominate chips in China first and then use that to scale up and then try to take over the rest of the world.