Keeping them dependent upon you guarantees that they never surpass you and that you can milk the relationship for all its worth economically and geopolitically. When they have their own fabs spun up it's possible that you are the one eventually stuck with inferior tech, and you lose all sort of revenue + leverage you'd otherwise have from the relationship.

Except it's not a guarantee. They can still surpass you. It might be a little harder, a little less likely - but it's still completely possible.

It make sense. China had X amount of demand. If the demand is met they are satisfied, if the demand remains unmet they seek alternatives. That seeking of alternatives primarily means huge amounts of money, that would go to Nvidia, going to direct competitors of Nvidia to "chip" away at their competitive advantage.

The long term result is the same regardless of who makes the chips but the real strategy is delaying China's ability to surpass the US. It takes a lot of time and money to essentially copy the entire infrastructure required to build an Nvidia GPU. Nvidia has enough demand as is.

China is a trading partner but there is still a serious catalyst for war in the form of the South China Sea. If we went to war with China in 5 years time, why would we sell them the tech they need to match our ability now? Let them figure it out on their own.

If the US wanted to delay "China's ability," wouldn't the strategy be to give them just enough GPUs to keep them reliant on Nvidia (and make developing alternative tech locally seem less critical), but not enough to develop superior models?

Friends close and enemies closer.

An economy kept dependent on American tech is unlikely to drop bombs on America and vice versa. Co dependency prevents war.

This isn’t what China does though, the moment new tech crosses the border they reverse engineer and start producing it locally. IP protections are meaningless there. How many times does this have to happen to sink in?

Yep.

"Good thing China doesn't have a long memory or anything!!"

Good luck with that folks...

What needs to happen is that the people who are getting wealthy from the offshoring of manufacturing and labor to China need to stop getting wealthy. Until then any and all excuses to pretend that China will operate in good faith will be levied to try and make people seem like it's in their best interest to hollow out the USA to hand over to China.

The problem is, the man in the mirror and it ain’t just the Chinese that have taken advantage, the Japanese and the Koreans are pretty good too, and so are the Taiwanese and it’s only a matter of time for one or two countries in Southeast Asia to rise up too, and if it wasn’t for Russia’s stupidity, both Russia and the Ukraine would have certainly produced what three or four very, very good AI models to the mix…

Soon, China, if they aren’t already, will be the premier developer of Thorium reactors courtesy of Oak Ridge, Tennessee and they also are now number one or at the least 1A when it comes to high-speed rail, and if the Russians and the Ukrainians weren’t fighting each other, that high-speed rail probably would be already built out all the way to eastern Europe.

Huawei has become a super company basically because of all the sanctions, Wxmt will become the dominant memory maker worldwide in the next five years due to shortsighted thinking in the West.