US vs. China AI race: Which companies are set to gain

00:00 Speaker A

Why do you think Trump decided, you know what, he’s going to allow Nvidia to export those H200 chips to China? I mean, was it because okay, Uncle Sam’s going to get a taste, Brennan? Is it because Trump thinks, hey, for now at least Xi has leverage when it comes to where Earth? What’s the reasoning there, do you think?

00:18 Brennan

I think President Trump, you know, his his, he’s not a career politician. He’s he’s been a business person and I I think he looks to corporate leaders as almost like a a shadow cabinet where I think he he wants to meet and and hear the views of if it’s Tim Cook or Jensen Wong or, you know, you know, other corporate leaders, you know, as we’ve seen earlier this year that, you know, after the CEOs of Walmart and Target and Home Depot met with him, you know, the tariffs were kind of de-escalated. So I think President Trump is unique in that he does listen to corporate leaders and I think Jensen Wong, you know, arguably said, you know, this is really, really critical for for Nvidia, but at the same time, I also think, you know, Chinese companies want Nvidia chips. So why why would you, why why would you turn your back on that, that revenue opportunity?

00:54 Speaker A

Well, and here Brennan, on this great AI race, you know, AI hardware, AI software, who in your opinion, Brennan, still is in pole position, still is in the lead? Is it is it the US and if so, how long do you think?

01:03 Brennan

I mean, certainly, uh, uh, you know, using Nvidia as, you know, they’re, Nvidia is very, very far ahead of of its Chinese equivalents. Uh, so I don’t I don’t think there’s any catch up on a Blackwell like chip, uh, coming from a Chinese competitor anytime in the near future. I think I think the two the two countries and really the ultimately the underlying companies are looking at AI very differently. You know, in the US, it’s really about an enterprise sale from Anthropic or Open AI really. Uh, at same, in China, the large language models, those are open source. They’re literally basically free. You know, there’s no mode to, um, a lot of these large language models in China where where the revenue is coming in is going to be on the cloud computing and that’s where an Alibaba, 10 cent and Baidu, uh, really are going to be the main beneficiaries of AI via cloud computing.

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