James Kynge

in three tranches that are given as subsidies to promising Chinese semiconductor companies.

And the latest tranche is about 50 billion US dollars.

So the Chinese state is very much behind companies like Moore's Threads that are aiming to replace foreign companies selling semiconductors into China.

So at the moment, all those things seem to be sort of stacked against this small Chinese company or, well, relatively small.

I mean, it's starting from a low base.

It doesn't make a profit.

It's on the U.S.

export control list.

So there's a lot of things that are not necessarily auguring that well for it, but

the big picture, the size of the market, the size of the government support, and the fact that it makes a product or makes so-called GPUs, which are intended to directly replace quite a few of Nvidia's sales in China.

All of those things, I think, are behind this enormous valuation and the way in which, obviously, investors in China are getting behind it.

But overall, I'd say at the moment, it's too early to say whether this company will be successful.

What's your take?

That's it.

Absolutely.

And I think quite a few people in the U.S.

will be looking at the fact that the founder of this company, Moore's Threads, used to head up the operations of NVIDIA in China and thinking, you know, how much American technology and know-how is kind of going out the back door to Chinese companies?

I'm not saying this is illegal.

But, you know, as China begins to catch up, and you've mentioned some of the cases there, you mentioned Cambricon, and of course, Huawei has got some chips which are now competing and gaining some big contracts in the China market, now competing also with NVIDIA.

I think quite a lot of people in the U.S.