Why US capital floods into AI: high ROI vs China's higher cost of equity
PAstynome · x · 2026-11-04
Responding to the claim that China will lose the AI race "because they are good capitalists," PAstynome argues both sides behave rationally: US investors pour money into AI because of high ROI, not a "machine god religion." The cost of equity is simply higher in China due to a larger risk premium from multiple factors, shaping more conservative AI investment.
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