The Chinese startup DeepSeek has launched an Artificial Intelligence machine that is much cheaper faster and better than the American competitors. NVidia fell 17% to this hour and the American 500 billion budget to advance the technology just received a hard beating. If other industries are a precedent, and they are, Chinese manufacturers will erase American industry.
The Japanese auto industry outcompeted American manufacturers like Ford, Chevrolet, and other former giants. Like German and British producers before, the American industrial heartland has been emptied. Japanese industry liquidated the photography and watch industries. People said they were unstoppable. Yet Japan, while still very powerful, has found its place and is not menacing the world. Now China is following the same process and is trying to erase the American hi-tech, AI industry. At a certain point, it will slow down and integrate into the world.
Fortune asks:
- How did China manage to catch up so quickly?
- Is there any hope for the United States to regain a clear lead?