[maxglute]

>US should eventually have both lower production costs and energy use in consumer use of AI models

To be determined. PRC can shift compute costs by building cheaper energy. Also arguable they can drive hardware costs to be competitive - % of manufacturing cost of hardware is ~30-40%, PRC save 100s of billions not paying western IP and service fees with indigenous hardware depending on how much central gov wants to squeeze margins. Would not be surprised if they can roll out 4x-8x more 14nm for compute parity and still have cost advantage once they get domestic fabs up at scale.