"But they are wrong. These arguments assume that China cannot succeed in AI without access to these advanced AI chips, which is not the case. Advanced AI chips simply reduce the cost of AI. Today's state-of-the-art AI models require a large number of AI chips to build and run. An advanced chip has higher performance; therefore, fewer are needed to achieve the same AI performance."
"As DeepSeek showed, clever software and algorithm design can dramatically reduce the number of AI chips needed. China's decision to open-source its AI models particularly allows it to leverage the best software and algorithms to reduce AI costs. Second, AI chips constitute only part of the overall costs. AI-based systems incur several other costs - engineering, data, software and licensing, regulations, energy, and infrastructure - where China has considerable cost advantages."
Supporters of export controls contend that advanced Nvidia AI chips could enable Chinese military systems and erode American lead in the AI service market. Advanced AI chips mainly lower training and inference costs because higher-performance chips reduce the number required. Software optimizations and algorithmic improvements can similarly cut chip needs, and open-sourced Chinese models enable rapid adoption of efficient software. AI cost drivers also include engineering, data, software, licensing, regulation, energy, and infrastructure, where China has cost advantages. Hardware packaging and interconnection significantly affect performance, and China can exploit strengths there; Huawei SuperClusters reportedly outperform Nvidia systems without the latest chips.
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]