Dylan Patel

It's sort of like YouTube lost money forever, but now it's the platform for watching videos across the world, right?

And ChatGPT will be the same thing.

So it's sort of that like aggregation theory argument.

But then there's also the other argument of like, you know, what if we're wasting the capital?

China doesn't necessarily think of it the same way.

But they are still incredibly pilled on like, well, we want to be able to make everything ourselves, right?

So make all of the chips ourselves.

We don't actually care that much about making all the chips ourselves.

Sure, Trump's doing the tariff.

Sure, we have the Chips Act.

Those were drops in the bucket compared to how much money China's releasing into the semiconductor ecosystem has been for the last 10 years.

They're made of China plan in 2015, five-year plan, and then the five-year plan in 2020.

And then it just continues like they've dumped

at least like four or $500 billion into this ecosystem through SOEs, through certain tax policies, through certain like land grants, through provincial governments, through the big funds, which is like government venture funds.

They're just called the big fund.

There's all these different ways that they've dumped capital.

And then Huawei, whatever you want to call them, whether they're the government, PLA or not, I think there's an argument there.

So they've dumped so much more capital into semiconductors than we have in an unprofitable way because they want to build that ecosystem.

And over time, it's like if you take any country in isolation...

China is the one that has everything at the highest level on average, right?