China's AI labs' only shot: hoard low-end compute and build the first million-chip garbage cluster
teortaxesTex · x · 2026-11-09
- Industry commentator sunhanchi argues Chinese model companies' only winning move is racing upstream and scavenging any compute they can get — betting on unconventional accelerators rather than waiting to smuggle Nvidia chips or for Huawei handouts: whoever builds the first million-chip cluster of "garbage" wins.
- teortaxesTex adds a caveat: this only holds for players who have already smuggled hundreds of megawatts of compute or secured Huawei's commitment.
- The attached interview excerpt argues China has too many base-model companies, margins are low, and the sector will consolidate to roughly "two big and two small" players.
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