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It's a little too later for export controls. Chinese models have made massive gains through legitimate research but also being trained on billions of tokens from Claude/GPT. The politicians have no idea how to stop that from happening so they pull the only lever they know.
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Also, don't forget that we're only here because the clown-in-chief cut them off from GPUs - forcing them to make do with inferior hardware (and hence superior ideas). I have no doubt that any controls would only make China stronger.
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> clown-in-chief

I'm extremely left leaning myself but I'd rather not be able to tell who won the last election cycle by looking at HN and seeing whether comments containing phrases like this for the president are upvoted or [dead]. The only thing it aids is convincing people the guidelines are for selective application. Everyone who doesn't like ${currentPresident} will be unchanged and those who do aren't going to be convinced by constant casual name calling across the site - probably the opposite.

I usually also expect to get called out as only saying this when ${currentParty} is in power or when it only benefits ${awfulThingsAboutCurrentParty}, regardless which that is and what those are at the moment. I've started including this note and the searchable token "reallynotpartyrelated" when commenting such things for later reference - this paragraph can otherwise be ignored :).

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Its like any other sanction, its designed to slow not stop
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But it actually had the exact opposite effect.

First the US blocked China from buying NVIDIA's H100, but allowed NVIDIA to sell them a China-special nerfed H100, the H800

Then the US blocked the H800

Then the US realized that China was indeed accelerating their US independence, so does a U-turn and has now approved the H200 (more powerful than both the H100 and H800) for sale to China, on a case-by-case basis

However - and here is the real kicker - China themselves are now blocking H200 purchases since they want the acceleration towards Chinese homegrown solutions to continue, and now we have Chinese models being served on Huawei Ascend chips, with next generation Ascend 750 chips (using CXMT made memory) targetting training currently in testing.

Now we have Apple asking the US government for permission to buy memory from CXMT given the global shortage!

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The Jensen argument that "oh we get them hooked on our technology and that will actually be better" is bullshit -- they would do the exact same thing they're doing now of building their own supply chains and compute power but be able to accelerate their progress in the meantime with US chips. It is worse in every way to sell them SOTA chips (or even previous generation chips).

Of course they have ways around this -- you can get black market GPUs and also API costs are SUPER cheap there -- they hack the subscription model, bundle a bunch of user accounts, and route API requests through them.

And yes they are getting to parity with US technology and will get there in a few years, they have decent chips but still not the quality of NVIDIA.

It's really a very complex situation

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I don't know what you mean by the "quality" of NVIDIA. All the western AI accelerators, from NVIDIA, AMD, Google (TPU) and Amazon (Trainium) are made by TSMC, and their speed/density is only possible due to TSMC using EUV machines made by ASML (a dutch company).

Without access to ASML EUV machines, the Chinese will be stuck on older less-dense chip manufacturing nodes, but in terms of building a cluster this is just a cost/efficiency issue - it means you need more chips, more electricity!

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You misunderstood my comment. My hypothesis is that it did _neither:_ it accelerated along an axis, and American SOTA/frontier is now laggard (efficiency).

Deepseek and Kimi are writing paper after paper with substantial architecture improvements for efficiency, because they can't just throw more hardware at the problem.

And China is now doing something on the hardware axis; which it may have never explored were it not for the sanctions.

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> And China is now doing something on the hardware axis; which it may have never explored were it not for the sanctions.

Gaining parity on the semiconductor fab front has been official government policy as part of their Five Year Plan for at least the last decade, straight from the Politburo. They were always going to go down this path, and with AI playing front and center on their upcoming plan, there’s even more pressure.

There was never a possibility of them not exploring it.

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The difference is that this time the both the government and the (semi) private sector invested billions in this area.

They have always been able to do this, but this time they did have the option to pass.

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There’s an ambiguity here: what is “this area”? If we’re talking about the semiconductor industry, they’ve been investing billions since the early nineties. The really big push came with the China Integrated Circuit Industry Investment Fund in 2014 at which point they were plowing billions into the industry across the public and private front. That one fund alone has $100 billion in assets under management at this point, and there are many other funds involved.

They’ve also invested in AI separately (before LLMs) in that time period but I’m less familiar with that sector.

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Oh no Chinas chip manufacturing efforts have a long and rocky history, they would be pursuing a sovereign stack no matter what.

The tradeoff is worth it. They’re even publishing papers which blows me away — their efficiency gains quickly become incorporated into frontier models because they are open sourcing them. They would be aggressively pursuing the same chip pipeline strategy as they are today.

US is lagging in efficiency work because the ROI is better elsewhere for us. We have the same tier of talent, once the script flips so can the research.

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Slow? The chip ban was just a few years ago. The result? China is more or less self-sufficient in chips, about to catch up with the latest generation. They even banned China from using lithography machines. The result? China is now producing lithography machines that only few in the world could produce.

Let's face it - all bans were dumb. They just gave China the legal (per WTO rules) justification to start producing everything domestically. The bans work as a reverse tariff, as a protectionist measure that actually protects your competitor. If China did those, others could bring China to court at the WTO. But the US did that, so nobody can sue China.

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You really think China doesn't have massive amounts of capital expenditure related to AI? They're actively bootstrapping an entire chip industry.... https://www.reuters.com/world/china/china-prepares-295-billi...
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Relatives vs absolutes. America will spend $500B and because of leaky pipes that's effectively 100B going directly to what's needed. China gets a lot of bang for their buck so even if they're spending a fraction of the US, they make it worth their money.
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That's true for domestic labor and manufacturing, like shipbuilding, but the bleeding edge chips only come from one place and the US labs get the best while Chinese labs do not (unless they smuggle them). China gets creative, sure, but it can't overcome the fundamental issue that the US labs have more magic rocks that do math faster than their magic rocks. And the current state of the art is to just "do more math".
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Nvidia GPUs aren't even the absolute SOTA for LLM inference anymore. Some labs are moving to ASICs and Huawei already have their own custom chips running DeepSeek as we speak.

There's enough money and scale on the line that software affinity like CUDA is no longer the deciding factor and there's margin for custom stacks.

Even more so after the USA GPU exports ban which is proving to have backfired by speeding up China's tech growth.

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Definitely hasn’t backfired. Exporting would have just sped up their progress. Instead they had to get clever and lean into the bottleneck which for them, now, is compute efficiency. This is temporary and they’ll figure out competitive chip design and production but not for several more years. It’s incredibly hard to match the quality of NVidia and TSMC, as China has found throughout years of trying.
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I’m worried if west gets to ahead the best thing for C is to destroy the factories to slow down the ai.

If west ai is too advanced can take over the world. So better go to war now on a same level playing field than later when you need to fight against a SGI

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That is exactly the scenario that I believe and invest in. I peg trouble in Taiwan in the next 2 years at about 30%, which is waaaay higher than is priced into the market right now. If you think intel has gone up in price a lot now, it will absolutely skyrocket if TSMC fabs suddenly disappear. After adjusting to a domestic fab pipeline, we will have built up again an industry with a good talent pool (which we don't have now, Arizona TSMC fab needed to ship people in from Taiwan). At that point, why go back to a TSMC model? Hence we will have a booming domestic production pipeline, though still with complex international dependencies for various components.
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Nope. If China were not banned from US-controlled chips, it would be importing chips at much higher prices, therefore getting less bang for its buck while strengthening competitors with its money in the process.

Instead, the US banned China from chips and lithography machines, giving China the legal excuse to start producing them domestically without violating WTO rules. Now China produces cheap chips and uses them with cheap electricity.

This was a dumb move by the US. Brought upon it by dumbf*ck aristocratic elites who grew up in isolated mansions and then received law degrees, with absolutely no understanding of technology and technology ecosystems. They thought they'd just make the rules and everybody would have to obey. It turns out in technology, they don't have to...

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> Nope. If China were not banned from US-controlled chips, it would be importing chips at much higher prices, therefore getting less bang for its buck while strengthening competitors with its money in the process.

Nowhere near the value of having access to chips, at any cost. They have extremely deep pockets. They already pay 6x the cost per FLOP.

> Instead, the US banned China from chips and lithography machines, giving China the legal excuse to start producing them domestically without violating WTO rules. Now China produces cheap chips and uses them with cheap electricity.

You think without export restrictions China wouldn't be doing the exact same thing? China needs absolutely zero legal excuse. I mean sure they have compute available on grey market / domestically but at 6x the cost per FLOP. Access to NVIDIA chips would make it dramatically cheaper for them. Yes you get chip income but that is not even close to what you lose. The strategy is doing what it was always supposed to do: slow them down, bleed their resources to force them to spin their wheels catching up. China is doing a great job with this but they are fundamentally constrained by these export controls.

You are right that this greases the wheels, they are further along than they would have been without export restrictions, but they are still delayed even with the reduced friction. The alternative is that they move slightly slower _while having the same compute infrastructure available_ and at dramatically lower energy costs. That is a far worse position for the US to be in.

> This was a dumb move by the US. Brought upon it by dumbf-ck aristocratic elites who grew up in isolated mansions and then received law degrees, with absolutely no understanding of technology and technology ecosystems. They thought they'd just make the rules and everybody would have to obey. It turns out in technology, they don't have to...

I think this is too cynical. Neither one of us is in the room to actually observe the real decision making, but export restrictions as a strategy are not some "dumbf-ck aristocratic elite" thing. They are perfectly rational from a strategic standpoint and arguably doing what they're supposed to do.

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I believe China has leaky pipes as well.
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China has a big corruption problem.
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their putting a ton of money into things that will benefit AI work if they work, but chipmaking is important for other reasons too, so if AI (somehow? I doubt) doesn't give enough ROI chips can be used for other things
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China’s chip industry is 7-10 years behind, and that is because they are desperate and have been throwing money at it. But technological progress requires more than just money.
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Jensen said the Huawei Ascend 950 is roughly comparable to the NVidia H200[1]

The H200 was released Nov 2024.

Even allowing for Jensen exaggerating the risk there is no way China is 7-10 years behind.

Looking at manufacturing process nodes, SMIC N+3 is a a 5nm process. 5nm was introduced by Samsung and TSMC in 2020 so at most that is 6 years.

But the chips they can produce on it are roughly comparable to "roughly level with Android flagships from three years ago"[2]

TL;DR: China is more like 2-4 years behind than 7-10 years. If China developed EUV lithography then all bets are off.

[1] https://www.reddit.com/r/LocalLLaMA/comments/1kxw6b9/nvidia_... - see video.

[2] https://www.tomshardware.com/tech-industry/semiconductors/se...

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2-4 years is enough to lock them out of the race.
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The H200 is a more powerful H100, and the H100 is far from obsolete - for example it is what Musk's Colossus-1 data center, currently being rented to Anthropic, uses.

The only difference between using a slower chip such as H100 (or Huawei's Ascend 750) vs NVIDIA's newer Blackwell chips (B200 etc) is that you need more of the slower chips to achieve the same total FLOPs in your cluster. It has zero effect on what models you can run on it.

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It's hard to understand: Do you think that having to use chips that were 20% less performant would lock China out of anything? Are you not aware that with the low costs they have, they can just stack ten times or more datacenters and run workloads in parallel to make up for that performance difference - even if there was actually one that high?
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No? They are actively in the race, what are you talking about
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By "the race" I mean "the frontier, and the race to superintelligence." They are categorically behind. The best they can do with the capacity they have is to distill US models, but that doesn't enable them to reach the scale needed to leapfrog the US in the race to superintelligence.
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It isn't distillation that gave GLM 5.2 it's jump in performance.

To quote Pat Toulme:

There’s a big misconception about how GLM 5.2 was trained. Yes, they distilled Claude and GPT 5.5 — but distillation is not how they matched Opus quality. Distillation only fixed the cold start problem in RL.

RLing an agentic coding model isn’t rocket science. In simplified terms:

1. RL needs trajectories — rollouts where the model actually completed a task in some env

2. No successful trajectory on a task = zero gradient = you can’t RL it. This is the cold start problem

3. Distillation solves it. You seed your model with knowledge from a smarter one (Claude, GPT) on tasks it can’t do yet

4. Now it produces positive trajectories on those tasks

5. RL on those trajectories and hill climb agentic coding

6. At that point you no longer need to distill and can solely hill climb RL to better models

This is an interesting curve. I’d argue it’s harder to get to Opus 4.8 from scratch than to go from Opus 4.8 → Fable/Mythos tier.

GLM 5.2 is already producing positive trajectories, so they have plenty to RL on — they’ll keep climbing to Mythos quality without distilling any further. They no longer need American models.

https://x.com/PatrickToulme/status/2069211575437627743

Not exactly sure what the finish line in "the race to superintelligence" looks like and even moreso it's unclear why you think being there first is a critical benefit.

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Yes but in an equilibrium steady state, compute and data advantages are all you need to first order. China does not yet have a compute advantage. RL is indeed the magic sauce for coding agents but the bottleneck for how much progress you can make, for both the US and China, is compute. The US at least for the next few years has a clear advantage here.
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So, China is in the race. Just not leading yet
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Exactly -- the hope for US strategy is that you can slow them down a lot but not forever. That slowing them down is in itself enough to keep a strategic advantage over them both in terms of economic growth and offensive capabilities both in terms of cyber attacks, intelligence and things like drones, etc.
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I trust Chinese companies with my data way more than the corporations of the 4th Reich.
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Incredible display of brainwashing
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-3 homer discount
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