They have a staggering surplus of grid capacity and can bring more online without any difficulty. We couldn't get a serious nuclear project done if Jeffrey Epstein was offering private flights to the ribbon cutting.
In the United States at any given time more than half of the FLOPs are badly misallocated, Meta has like, a double digit percentage of the total capacity going down the drain every day and has for years. That's a conspicuous example but on OpenRouter rankings it's rare to see more than one or two American vendors in the top 10, sometimes the top 20. But 3rd, 4th, and 5th place are all merrily burning half the compute duplicating effort and missing key innovations because we stopped publishing real results. In China if DeepSeek makes a breakthrough it's at Zhupai and Moonshot and MiniMax and MiMo and Qwen that week.
Our only lever, export restrictions, seems to do nothing but breed multiply antibiotic resistant super hackers who just get more efficient and immediately propagate all of those efficiencies to the rest of the Chinese AI industry.
At the beginning of 2026 there was one Chinese lab with a model that had any real relevance fielding modern tool users. Today in July there are like, eight lagging the absolute frontier by maybe 3-6 months. Barring some massive bend in some curve 3-4 of the top 5 and 6-8 of the top 10 will be Chinese and open weight by January.
The great irony in all of this is that our current playbook is straight out of the 1960s USSR, and the PRC's current playbook is straight out of 1960s USA. We're the ones with the opaque decision making and gross resource misallocation driven by the personal agendas of a shadowy cabal of frenemies wired back channel into government in the form of the individuals rather than the offices. They're the ones with a thriving marketplace of ideas powered by robust public/private partnership and a paved path running bidirectionally to the university system.
It's going to implode because the Kruschev system does. Theirs is going to thrive because the Kennedy system puts a man on the moon before the decade is out.
There's no evidence of this, the parsimonious explanation is PRC AI, by virtue of being sanctioned, simply is not able to run magnitude more expensive compute model, and even if they could, they don't have the $$$ or market cap to do so. So they optimize and involute margins like they do in everything, and US misallocated expensive flops because the entire industry has been financially engineered for phat margins along the entire producer supply chain is just cherry on cake. Like wipe out the 50%+ margins from toolmakers, fabs, gpu/memory/data center components to some reasonable level and US is overpaying for tokens by a stupid multiplier on top of actual compute misallocation due to incompetent infra. Maybe PRC AI has unsound economics, but it's structurally simply not able to misallocate as much as US who will find a way to financialize compute to point of absurdity.
https://www.bloomberg.com/news/articles/2026-05-20/airbnb-s-...
I don't know how much business OpenRouter does in Europe (they have some GDPR text in some settings pages I think) but it's zero in China.
You might also consider the countless companies that do nothing but open weight LLM inference: Together (of Tri Dao fame), Fireworks (founded by my old colleague), Baseten, SambaNova (of Chis Re fame), and too many more to count, there's a new one every week. Plus NVIDIA does a ton of this business via NIM and shit.
I'm trying to be reasonably polite because it's possible you literally didn't know that, but this reads as a troll, so, if it is a troll please stop.
The administration could probably put some serious friction on open weight model use in the Fortune 500 for a little while, but the opposition never got such a gift right before a squeaker midterm. And outside of major enterprises with puckered ass compliance departments? Not a chance. It's popular around here to forget Uber and AirBnB and yes, OpenAI and Anthropic all got their start flagrantly breaking the law and grew lawyers and lobbyists faster than anyone could enforce it. And this time everyone from the DNC to the EFF would be holding hands wearing "Save The Models" t-shirts. Not even NVIDIA is remotely pretending they're anything but all in on GLM 5.2, they had an NVFP4 quant up by the time most people read the blog post.
And the Trump Administration isn't exactly enamored of Comrade Amodei at the moment, being as they're appealing the lawsuit Anthropic brought against the Pentagon during a shooting war.
Forcing the American proprietary AI megalab financing event was our fiscal Ukraine Special Military Operation, the market is calling the bluff and neither the capital markets nor the Federal Reserve has the dry powder to absorb this one.
The Treasury auctions will flat not clear in an orderly way. We can't raise 2-4 trillion dollars on a dime in 2026 and if CoreWeave turns out, as many suspect, to be Patient Zero? It would be that big a hole.
We play by the same rules as everyone else now. I hope we regard it as being worth it, but I fear we will not.
On one hand it appears to cooperate with OpenAI and Anthropic, as big customers.
On the other hand NVIDIA cooperates with Palantir, providing the HW for its "Sovereign AI OS" (a turnkey system including HW and SW for local inference and post-training/fine tuning) which uses the slogan "The future of AI is on-prem" (i.e. not as a customer of OpenAI or Anthropic, but using an open-weights LLM, e.g. a fine-tuned NVIDIA Nemotron or a Chinese LLM).
Presumably with the goal of promoting their competing solution, Alex Karp (Palantir CEO) has delivered a few weeks ago a very harsh criticism of Anthropic and OpenAI (who allegedly inflate the token consumption and they might also steal the data of their customers, which must be sent to them).
So NVIDIA both cooperates and competes with OpenAI and Anthropic.
Once China starts to get scary, Commerce will export control GPUs and declare Chinese models "foreign munitions." Any nation doing business with the US will not be allowed to use these models either, and that will be the end of that.
It is just not in the US's interests to fund China in the race to AGI.
Peter Hegseth, another really pro-America being powerful guy, he's dealing with a lawsuit because he doesn't want Anthropic in his military, he calls it a supply chain risk (he's right).
There is no evidence of any kind that a complex attack vector can be trained into model weights and survive all the crazy slicing and dicing that happens between published weights and running model. These things get quantized and run on mathematically imprecise kernels and sampled and LoRA-tuned and Dolphin/Orca de-tuned. Go look at what the ComfyUI community comes up with, those guys know more about WAN 2.2 than the people who trained it. Because those models run for real on a desktop, so there's mad innovation at light speed.
There is no one who wants a capriciously expensive black box run by extremely creepy people, not once the capability crosses over (in about November).
But don't take my word for it, you just had a chance at one AI IPO, and I'm sure you'll get another, so if you like how that goes, you don't need to convince me!
We are in a race to superintelligence. The first country to AGI will be the first to superintelligence, and the first to superintelligence will have de facto control over the world and the future of humanity. They will also be able to prevent others from reaching superintelligence.
Of course it's in the US's best interest to slow down China. You aren't zooming out and looking at the big picture, you're taking models as slightly useful tool, not what they will soon turn into.
As well, it is a false equivalence to say that local models are only Chinese and otherwise we would use cloud models, but there are American or European ones, so a ban would simply force companies to use these, even if they are inferior to Chinese ones. It's simply a matter of national security to the US government, and they will not care what random people in media say.
I don't know what part of this you guys are having trouble with, but it doesn't get a whole hell of a lot more emphatic on "what the US Government thinks" than who the Pentagon is in court with to avoid doing business with that party.
Mr. Hegseth is the representative of the administration in the AI usage policy of the largest bureaucratic organization in the history of civilization. He has emphatically rejected at least one black box American AI megalab and President Trump has endorsed this action on Truth Social.
The government's stated position is not what you among other commenters are stating or implying as the government's position.
And you mention Hegseth but it was Lutnick at the Department of Commerce who banned Fable, so there are many competing parties in the government. Again, it is not just Anthropic who'd benefit from a Chinese model ban.
https://www.cnbc.com/2026/06/17/us-deepseek-blacklist-cxmt-n...
There is nothing to support this. You get cheap Deepseek tokens by foreign providers too.
It is the same thing with automakers. They complain about not being able to only make luxuary cars with high profits with BYD raining on their parade and blaming the Chinese gov.