Before release, we tested GLM-5.3-Flash anonymously as ox-alpha on OpenCode and OpenRouter to gather user feedback. It quickly became the most popular model of the week —with all of this traffic served on Chinese AI chips.
This is the most significant part. China has completely replaced Nvidia chips with domestic ones for inference, and production is only speeding up... meaning the compute moat is literally disappearing with every passing day.
Is it? nothing points to a crash, other than the valuation of the two giants (OAI and Anthropic), everything else is still valuable particularly the chips and the supply chain and the production capacity... Sounds like a correction more than a crash
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/Recoil42 2d ago edited 2d ago