Subscribe to enjoy similar stories. The success of DeepSeek, the Chinese rival to American goliaths with radically more cost-effective artificial intelligence, reveals the futility of U.S. sanctions policies.
Under the Biden administration, the American government was captured by some of the world’s most ham-handed national-security socialists, while the Chinese private sector under Xi Jinping commands some of the world’s most nimble capitalists. The entrepreneur behind DeepSeek’s apparent breakthrough is Liang Wenfeng, who founded the High-Flyer hedge fund in 2015. Since DeepSeek’s launch less than two years ago, the venture has received no further outside funding.
China has roughly nine times as many engineers as the U.S. and perhaps 15 times as many science and technology graduates. That means Mr.
Liang had a cornucopia of technical talent at his disposal, all galvanized by the challenge of doing AI without violating U.S. restrictions on the memory bandwidth of their Nvidia graphics processing units. These chips, like the leading GPUs in U.S.
AI data centers, are nearly all fabricated by Taiwan Semiconductor Manufacturing Co. “Do more with less" is the Chinese entrepreneurial answer to American “Stargate" program socialism, mobilizing a half-trillion dollars to do more with more, as governments and politicians usually try to do. By discrediting U.S.
sanctions and subsidies, again, Chinese capitalists are performing a service for U.S. capitalism. American entrepreneurs are hamstrung by a putative $6 trillion in global climate-change mandates and subsidies for obsolete technologies, such as windmills and solar panels, specified by zero-sum Green New Dealers.
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