overwhelmingly Archives

There is an AI battle that China is overwhelmingly losing against the US: that of Capex

August 12, 2025 by usatoday24

Beijing, we have a problem. It is much that the Asian giant has achieved In recent years to achieve compete from you to you With the US in the field of AI, but it is losing a crucial battle: that of investment. There his rival was already overcoming him before. Now he is crushing him. Investment gap. Winning in AI means doing it in many areas. China has managed to overcome many obstacles and is competing with the US in the ability of its models. Is even starting to have Really promising chips They can put things to Nvidia. However, China has a big problem in the field of investment, because its companies do not invest by far as much as the Americans do. The US capex is astronomical. In the last five years Google, Microsoft, Meta and Amazon They have accumulated A capex of 5.36 billion yuan. Meanwhile, the seven large Chinese technology companies (Tencent, Alibaba, Baidu, JD.com, Kuaishou – one, do not include Bytedance -, meituan, and netease) invested a total of 630,000 million yuan. The difference is spectacular, but it has been increasing over time. According to A report From Jinduan Research Institute, in 2020 the US capex ratio with China’s was 1: 6, but at present that ratio is already approaching 1:10. It is not so much that China does not invest: is that the USA invests much more. Source: Jinduan Research Institute Data centers send. Although not all the capex of these technological ones is intended for AI, the majority of that capital expenditure is certainly focused on this area. In fact, we have already seen how the great US technology have announced multimillion -dollar investments in data centers. From 100,000 million of dollars that intend to invest Amazon to 65,000 million of goal dollars, the figures are absolutely dizzy. Network effect. To that problem is added that of Network effect which is causing US investment. This effect occurs when a product or service becomes more valuable as more people use it. The US investment allows better models to develop and attract more users that generate more data. These data “feedback” AI and improve models, which in turn makes more users use it, and thus in an infinite loop. The quality of the Chinese models in front of those of the US is remarkable, at least according to some of the most popular benchmarks in the market. Source: Artificial Analysis. Adoption rate. The problem, they indicate in the Jinduan report, is in the adoption of the AI by the US, which is also supposedly far superior to that of China. According to its data, the AI adoption rate by companies in the US is 78%, while in China that figure does not go from 15%. The first data comes from A study of the consultant McKinsey, while it is not clear where China comes from. The same goes for the number of active weekly users of chatbots of AI. In the US, 1,000 million are exceeded – only chatgpt He already counts With about 700 million – but in China that figure seems to be only 70 million according to the study, a figure that a priori seems doubtful. The Questmobile consultancy revealed that last November the number of active users of AI apps in China exceeded 100 million users. China (probably) would like to spend more, but can’t. Although it is not clear if the adoption rate causes that minor capex or is the other way around, but what is certain is that Chinese companies would probably want to increase their capex to bet even stronger for AI. The problem is that they cannot due to export controls which has imposed the commercial war between the US and China. If the United States Veta chips export And advanced components from AI to China, those companies simply cannot dedicate more money to buying them. Dividends. The authors of the Jinduan report point to another reason for that difference in Chinese Capex-Eeu. Chinese companies are using the benefits obtained to repurchase actions and offer dividends instead of dedicating them to CAPEX. According to this report “in 2024, the total net amount of the repurchases of shares, dividends and debt amortizations of Tencent reached 1.68 billion RMB, more than double its capital expenditure for that year.” Thus, the restrictions imposed by the US are only part of the problem. The “deflation of AI” China seems to be due to a certain inaction by these companies, the report points out, and that can end up causing a big problem, especially in the long term. Image | Karolina recordowska In Xataka | The infrastructure boom for AI begins to show cracks: China accumulates unreasonable data centers, and is not the only one

23 years ago China gave the US a lesson. Thanks to it today dominates the battery industry overwhelmingly

June 17, 2025 by usatoday24

The German-American physicist John Bannister Goodenough patented the technology that allowed to manufacture Iron and lithium phosphate batteries (known as LFP for its English denomination) in 1997. In 2019, when he was no less than 97 years, he was awarded the Nobel Prize for his contribution for his contribution to the development of lithium ion batteries. However, Goodenough made a mistake. An important mistake: he failed to transfer his innovation to the American industry, so its impact on the West was minimal. Wang Chuanfu, the founder of the Chinese company Byd, did not make that mistake. In 2002 he perceived the potential of the technology that Goodenaugh had invented, so he asked his research and development team (R&D) to investigate the technology and capabilities of LFP batteries with the purpose of minimizing the dependence that China of the nickel and cobalt had. That decision I guide Byd towards the leadership position Shared with Catl currently occupied in the battery production industry. In fact, in 2008 he placed in the market The first car in the world Equipped with an LFP battery. China manufactures 57% of the batteries used by electric cars China is currently The largest electric vehicle market of the world. In 2025 in this country more electric cars will be sold for the first time than with combustion engine thanks to some extent to government subsidies. In addition, China is the largest electric car exporter on the planet. In 2023 he exported approximately 1.7 million electric vehicleswhich represents more than 30% of its total car exports. However, its international expansion is being seriously conditioned by the tariffs that are imposing USA or the European Union, among other regions with very serious difficulties to compete with the Chinese electric car. Finally, as we have seen, China is also a world leader in The production of lithium batteries. If we stick to electric cars the country led by Xi Jinping Fabrica 57% of batteries that these vehicles use. CATL and ByD are the largest lithium batteries on the planet with a market share in 2024 of 37.9% and 17.2% respectively, according to the consultant Sne Research. In 2017 for the first time the market share of NCM batteries surpassed that of LFP in electric cars China has reached this leadership position due to several factors. On the one hand it is The largest producer in the world of lithium and rare earths, which are the main raw materials used in the manufacture of batteries. In addition, it controls the processing of these materials and is capable of producing large -scale batteries and with a very competitive price. However, in this recipe there is one more ingredient that we cannot overlook: byd and Catl lead the global battery industry thanks to their capacity for innovation and adaptation. In 2017, Chinese government subsidies prioritized the development of Nickel batteries with greater energy density, so much of Chinese battery manufacturers opted for NCM technology. These lithium -ion batteries use a nickel (ni), cobalt (co) and manganese (mn) cathode, hence their name. And byd lagged. In fact, in 2017 for the first time the market share of NCM batteries surpassed that of LFP in electric cars. And in 2019 the NCM batteries already dominated the market. But Byd did not give up. Wang Chuanfu was convinced that the really important security was, and, therefore, the thermal stability of the batteries, so it launched a new R&D project that concluded with The tuning of Blade batteries. These devices are thinner, have modular structure and can be easily integrated into the chassis of electric cars. This bet went well to Byd. At the end of 2020 this company and catl They controlled 66% of the Chinese market of the LFP batteries for electric cars against 6% that added in 2019. This is the authentic strength of the two Chinese companies that lead the world battery industry. Image | Byd More information | Volt Rush In Xataka | Historic record for China: its chips industry has produced in 2024 more than ever despite the sanctions

Bill Gates has radiographed Intel. And his diagnosis is overwhelmingly accurate

February 7, 2025 by usatoday24

Intel’s health is worrying. We have talked about the problems he faces This company with some depth during the last six months, but to delimit its context it is important that we remember that on August 1 he announced A very aggressive cost reduction plan which seeks to increase the efficiency of your business model and competitiveness. Its purpose is to reduce your expenses in More than 10,000 million dollars during 2025. To achieve this in essence, two fronts are attacking: 15% of its workforce has been undone, and, in addition, it has significantly reduced its investment in research and development, marketing and general administration. Presumably most of these cuts was executed before 2024 ended, so, on paper, for 2025 Intel’s maximum austerity strategy It will consolidate definitively. Bill Gates analyzes why Intel is in such a committed situation For users it is very bad news that Intel is going through such a delicate moment. It would also be to the same extent as AMD, NVIDIA or Apple, among other companies, cross a similar crisis. It is evident that what interests us consumers is that these companies compete with each other, and so that they can do so, they are necessary to be in the best state possible. Bill Gates also believes it. Your statements a The Associated Press They have no waste. “I am stunned because Intel has lost his way. Gordon Moore always kept it at the forefront, and now they are lagging behind in terms of chip design, and also to the manufacture of integrated circuits. And both aspects require a great capital investment. artificial intelligence (AI), and Your manufacturing capabilities They do not even use the standards that companies such as NVIDIA or Qualcomm consider simple. I think Pat Gelsinger was very brave when he said: ‘I will not fix the chips design; I will fix the manufacture ‘. I expected, for its good and for the good of the country, that it was successful “, Bill Gates has confessed. “The chips revolution for AI and their manufacturing capabilities have not even used the standards that NVIDIA or Qualcomm consider simple,” PAT GELSINGER Abandon Intel on December 1. Although it is already completely disconnected from the company that has led for almost four years, the possibility of separating the chips manufacturing subsidiary from the rest of the company remains above the table. However, like We explain to you At the end of November, if you finally decide to do so, you will not have complete freedom. And he will not have it because he has contracted obligations with the US government as a result of the reception of the 7,860 million dollars given by the Department of Commerce as a subsidy, and also of the 3.5 billion dollars which will receive from the Department of Defense to make chips for military applications. Intel’s commitment to the US administration directly involves the splitting of its semiconductor manufacturing division in the form of an independent subsidiary. The US government has asked Intel that Keep the property of at least 50.1% Intel Foundry if this business unit finally got to separate and acquire the form of a new private legal entity. And, despite everything that has happened in the company in recent months, as I mentioned a few lines above, this possibility is still on the table. Intel it is crucial to increase its competitiveness, and the splitting of chips factories could help you get it. Dave Zinsner, the company’s financial director, has declared That a possible formal separation of the manufacturing and development of products is a matter that is completely open and that will have to decide the next leader of Intel. He will decide if he goes ahead with Gelsinger’s plan, or if, on the contrary, he turns around. Right now it is difficult to anticipate what will happen, but whatever happens, as Bill Gates argues, it is desirable to be in good shape. Image | Pexels (Cottonbro Studio) | World Economic Forum More information | The Associated Press In Xataka | The next revolution of the chips is approaching. Intel, Samsung, TSMC and AMD already work on glass substrates

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