The US lost the AI competition At the outset of the AI…
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The US lost the AI competition
At the outset of the AI competition US tech companies foolishly assumed spending = output. That simply because Asia didn't have trillions of dollars to spend on technical innovation that they would be unable to create technical innovations. The US blacklisted China from every chip it could imagine and imagined themselves that they had created a moat.
Fast forward to Kimi. Kimi can compete on quality. Where China won the competiton is on cost. Kimi can afford to sell AI compute for 1/1000th of what American AI companies do simply because they don't have to recoup 10T of capex spending.
American companies HAVE to fleece consumers because they've spent so much capex. They HAVE to make back that 10T. If AI is not ridiculously profitable they have LOST MONEY. American capitalists do not lose money. So they have lost.
At the outset of the AI competition US tech companies foolishly assumed spending = output. That simply because Asia didn't have trillions of dollars to spend on technical innovation that they would be unable to create technical innovations. The US blacklisted China from every chip it could imagine and imagined themselves that they had created a moat.
Fast forward to Kimi. Kimi can compete on quality. Where China won the competiton is on cost. Kimi can afford to sell AI compute for 1/1000th of what American AI companies do simply because they don't have to recoup 10T of capex spending.
American companies HAVE to fleece consumers because they've spent so much capex. They HAVE to make back that 10T. If AI is not ridiculously profitable they have LOST MONEY. American capitalists do not lose money. So they have lost.
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