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this post was submitted on 19 Aug 2026
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Not at all! China isn't trying to do the same buildout. In fact, they're turning towards the AI-as-software model, in which AI is run locally and sold as software rather than being sold as compute from large supercomputers.
It turns out that most of the things common folk and common businesses do with AI are managed pretty well with open source AI software run locally with a dozen terabytes of training data.
And if the US companies sold tokens at their actual rate (not at a loss) then it would be cheaper for even small businesses to put together a high-powered PC and set it up to do AI tasks. So for everything that isn't the stuff I listed, the AI-as-service model is already obsolete.