China Is Undercutting America’s AI Giants
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17,000. I feel like I'm gonna be surprised.
Money market's mad.
If money is evil, then that building is hell.
Show goes on. The price of merit watch is so sad. Welcome to Prophecy Markets. I'm Ed Elson. It is July 28. Let's check-in on yesterday's market vitals. The major indices were mixed as chip stocks sold off. Brent crude fell below $90 per barrel as The US and Iran paused their attacks. The yield on ten year treasuries declined. The Chinese chipmaker CXNT soared more than 400% in its public debut, becoming China's new most valuable company. More on that later. And finally, Apple rose more than 1% to overtake NVIDIA as the world's most valuable company. Okay. What else is happening? Chinese open
I think it's really a lot of happenstance more than it was any initial intentional strategy or ideology. If we look at the history of AI model development, a lot of the initial general purpose frontier AI models that were coming out of places like OpenAI and then Anthropic were proprietary. The weights were not accessible to any sort of outside users. And so for China, there was a question of where and how they might be competitive on the global marketplace for advanced AI models. And so having models that for the weights that are openly available and can be used by companies and startups and
One of the things that has caused a lot of controversy is this idea of distillation, and this is what Anthropic and OpenAI have accused many Chinese AI companies of doing, distilling their models, which has a relationship between being an open weight model as well. What is distillation, and why does it matter in
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