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Raula Khalaf, editor of FT, chose his favorite stories in this weekly newsletter.
It is difficult to talk about the economic history of the 21st century without discussing “China Shock”. It is often the word used to describe China’s entry into the world market, a change that brought the rich countries an abundance of cheap products, but kept the entire industry and workforce.
Diplos Could provide a sequel. A short -known Chinese Hez Fund has thrown a grenade with a large language model in the world of artificial intelligence, which is in fact, the leader of the market, Sam Altman’s OpenAI, a fraction of costs. And when OpenAI considers the work of its models as ownership, DIPSC R1 wear its technical interior on the outside, which makes it attractive for the use and construction of the developers.
In the AI era, things run fast; Terriblely, the five largest technology stock made for AI-Chipmeaker Nvidia and the so-called Hyperscale Alphabet, Amazon, Microsoft and Meta Platforms-jointly decreased by nearly $ 750 billion market prices before opening US markets. It can be especially horrible for Nvidia if it is true that the diploses have won without using its glossy chips.
Investors in technology companies – such as Europeans, such as Chipmaker ASML, and energy companies that investors hoped that data centers would encourage fuel – their investments were wondering if they were smoke. According to the visible alpha assumptions, hypersscalers will launch a plow at a cost of about $ 300 billion this year. Analysts are hoping that on Wednesday, when they report income, Meta and Microsoft will report a total of $ 94 billion investment for 2024.
Frankly, the game is not over. The actual possibilities of the diplos are still unclear, and it has not yet achieved the “artificial general intelligence”, the human -like condition that is following the meta and openAI. But the rules may change. At least, DIPSC may take some customers of US giants. The worstly, it challenged the original belief that the more hardware is the key to the better AI. This policy has underpinned the market value of Silicon Valley companies because they have invested in fist.
What is bad for hypersscalers can still be harmful to everyone else. For most business users, having the perfect best model is reliable and less important than being good enough. Not every driver’s Ferrari is required. Progress like R1 may be a big step for “agents” who deal with customers and perform work in the workplace. If they are found more cheaply, corporate profits should be increased.
In that sense, this second China’s push can be similar to the first one. Not only can it bring destruction but can bring a change – though a painful for many. Researchers have assumed that for every work lost in China’s push, The purchase power of the US household has grown more than $ 400,000. Ai domination is stopping; Great gift has begun.
