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China AI Hardware Supply Expansion Sparks Government Backstop Debate

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Teortaxes▶️ (DeepSeek 推特🐋铁粉 2023 – ∞)#421
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Teortaxes▶️ (DeepSeek 推特🐋铁粉 2023 – ∞)@teortaxesTex#421inAI

@zephyr_z9 Everything that can be made in China will eventually have supply expanded, no? Or do you mean the govt needs to backstop the demand to see that through?

Zephyr@zephyr_z9

In 2025, cost of building 1GW of compute used to be 2x-2.3x cheaper in China using Chinese hardware (GPU/ASICs) On a FLOPS basis, cost was equal cuz Nvidia hardware has a 2.5x-3x Flop/W advantage over Chinese GPUs (fp16) But if u look at recent 2026 data, component cost inflation (CPUs, storage, memory, optics/networking) and GPU scarcity has led to severe price increases Atlas 800T server used to cost 800k-1M RMB when it was launched last year Now u have to pay 1.8M-2M RMB for it

2:56 PM · Jun 9, 2026 · 2.2K Views
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Teortaxes▶️ (DeepSeek 推特🐋铁粉 2023 – ∞)@teortaxesTex

Pretty crazy that it was even equal on $/fp16 FLOPS as late as in 2025 The story of Nvidia supply chain's technical lead is much more impressive I think all lower-end component supply will expand wildly over 2026-27

Zephyr@zephyr_z9

In 2025, cost of building 1GW of compute used to be 2x-2.3x cheaper in China using Chinese hardware (GPU/ASICs) On a FLOPS basis, cost was equal cuz Nvidia hardware has a 2.5x-3x Flop/W advantage over Chinese GPUs (fp16) But if u look at recent 2026 data, component cost inflation (CPUs, storage, memory, optics/networking) and GPU scarcity has led to severe price increases Atlas 800T server used to cost 800k-1M RMB when it was launched last year Now u have to pay 1.8M-2M RMB for it

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