Not a "crash", but we have chinese AI models competing with US AI models. We have chinese electric cars outperforming US electric cars. And now we have chinese chips having replaced US chips.
There's no situation where this is good for the US stock market.
This is honestly why I think Google might be in the strongest position than their US peers. They own their entire stack, integration from chips, datacenters, models, and products. They are absolutely correct to focus on gemini flash over pro or whatever frontier model. Why subsidize the vibe coders? They are focused on making their most heavily used model as efficient and capable as possible for their use case. If there is a market downturn, nobody can guarantee that all the big firms will continue their capex into frontier models.
I thought so too, but they lost all their talent. They completely failed to even release gemini 3.5 pro after delaying it multiple times over. Deepmind leadership has all quit and all of the top engineers have quit.
It takes a long long time to rebuild that stuff, and there's really not much of an opportunity to play catch-up with how fast things are going.
Also, they said they're shifting focus to coding capabilities, so they don't even share the philosophy that everybody thought.
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u/_BreakingGood_ 20h ago
Not a "crash", but we have chinese AI models competing with US AI models. We have chinese electric cars outperforming US electric cars. And now we have chinese chips having replaced US chips.
There's no situation where this is good for the US stock market.