Part 5/8:
Zion provides insight into the current landscape of chip manufacturing, underscoring the importance of high-end chips used in AI applications. He points out that many of these advanced chips we're looking at are sanctioned, complicating the landscape further. While Nvidia has been implicated in circumventing sanctions to maintain market access in China, the subsequent banning of these chips under the Biden Administration complicates the situation for both Nvidia and Chinese companies.
Even supposing Deep Seek has made genuine advancements, the technological disadvantage faced by Chinese manufacturing capabilities would likely prevent them from fully capitalizing on this development, as their production facilities lag behind in the generational capabilities of chips.