Dylan Patel

Sure, they're like 30 years behind on jet engines or 20 years or 10 years, whatever it is, but they don't need to go outside of China for any of the materials besides like raw materials.

Whereas like the US needs like titanium from here and like, you know, blah, blah, blah from there, right?

And the same applies to their semiconductor ecosystem.

Sure, the US and Taiwan and Korea are way ahead,

like three, four years.

But then they also have the accumulated capital base of all of the existing equipment and all of the existing fabs.

But they need to import from all these different places because it's a global supply chain.

And so China is like much more concerned today about being insular than being the best in doing this like aggregation theory, which is sort of maybe what ChatGPT is kind of doing.

I wouldn't say OpenAI is fully pilled on that view.

There are also like a lot of people who view the like, oh, we're going to make AI that makes AI better, that makes AI better, that makes AI better and is AGI.

The other view is like, you know, hey, we're going to make AI so much better that it can do software engineering and we have trillions of dollars of value.

China doesn't fully believe in those things yet, I think, on a total basis.

But because they're so talented and they have an insular supply chain

Yes, they purchase some stuff from the foreign world.

They rent stuff.

They have ByteDance, who's, I think, the third largest user of GPUs in the world after OpenAI and probably Meta, although ByteDance may be bigger than Meta, the third largest user of GPUs in the world, or second, maybe, even ByteDance is.

They have all the other major Chinese tech companies.

They have all of these amazing graduates.

They don't have a talent war.

Companies don't poach from each other.