[cedarseagull]

Not OP, but IMO the Chinese are waging economic warfare by "commodifying the competition". US VC's and equity are massively invested in AI being very very profitable and as soon as it's not that becomes garbage debt on a balance sheet, and a lot of it. When money is invested it's expected to make a return. When a few people make bad investments they lose their bag, when many many people all make the same bad investment, you get a nasty recession. When the US goes into recession China is more emboldened to pursue their agenda because policy makers are distracted by shoring up support at home and not as interested in expanding their power abroad.

[inigyou]

Free market economics is constant warfare. It's called competition, and if you're really doing free market economics, you don't get to shut down the market every time you're bad at it.

[sp527]

That sounds like a problem for the idiots invested in this garbage and who cut foolish sweetheart debt deals with the hyper-scalers. That's mostly rich people, because they haven't yet found a way to offload their bags onto retail (though they're certainly trying).

[mswphd]

I'm confused. China has been in a fairly bad recession the last ~2 years (their housing bubble popping). Why are we assuming that recessions can only happen in the US?

I'm also confused how China managed to convince so many US VC's to spend an insane amount on a technology with "no moat". China exporting cheap AI hurts American hyperscalars. But it doesn't induce the behavior in American hyperscalars that causes them to be vulnerable to cheap AI. It seems kind of patronizing to point the finger at China, rather than acknowledge the American (potential) misallocation of resources.

[WarmWash]

You're attacking the strawman of "China made VC's invest in AI". That didn't happen nor was it claimed. China is being opportunistic here.