The cost of fire returns to the public, clearly priced

The wise king has officially approved NVIDIA's sale of H200 artificial intelligence chips to China, and some say this is a gesture of easing relations with China. While the easing is indeed in the national interest, it also aligns with personal interests. In the past, NVIDIA chips were restricted from being exported to China, but that wasn’t really a restriction; it was merely that they couldn't be exported directly to China. However, by going around, indirect exports were still fine. Thus, whenever the amount of AI chips imported from the U.S. to China decreases, the imports from Singapore, Malaysia, and even the UAE increase, with Singapore alone accounting for 28% of NVIDIA's revenue. Among these, the proportion of chips actually supplied to the local Singapore market is only about 1%, while the remaining 99% has nothing to do with the local market; anyone with discernment knows that Singapore doesn’t need that many chips.

However, those with discernment do not speak the truth; it is enough for them to see clearly in their hearts. Therefore, the U.S. restrictions on China are equivalent to limiting loneliness; they haven't truly restricted China's AI development, and instead, have promoted localization. After all, everyone is worried that one day they might really be unable to procure NVIDIA chips. A backup plan is necessary, and regardless of the performance of domestic products, a batch must be stockpiled as preparation. Thus, domestic AI chips have opened up part of the market, gaining a foothold. Since the restrictions are of no use and don’t earn money, it’s better not to restrict; this is the wise king's latest thinking. If there are no restrictions, at least they can make money—NVIDIA makes money, and his family also profits. According to the agreement, NVIDIA must pay 25% of the H200 sales revenue from China, which means a significant increase in tax revenue. The government directly demanding sales revenue sharing is quite shameless.

But the actual situation is not as simple. Even if the wise king doesn’t demand payment, the approval rights for selling or not selling NVIDIA products lie in the hands of officials at various levels, and this revenue is theirs; now it has merely shifted to the federal government, to the president. This is also the reason why NVIDIA readily agreed; since it is money regardless, why not give it to the president? The matter gets done faster and feels better. Originally, it was the money of various bureaucrats, but now it is concentrated in the White House; this is called the American version of "the cost of fire returns to the public." In special times, there’s nothing wrong with "the cost of fire returning to the public"; after all, it is clearly priced. If you are willing, then do it; if not, then let it be. At least it’s not opaque, but this way, many people will be offended, making things a bit difficult. After all, everyone’s cake has been taken away by you, and no one can stand that.

Thus, the subsequent pulling and tugging is inevitable; already, the Republicans are arguing about re-imposing the ban. The reasons for the ban are all high-sounding, such as "national security" and "preventing China's development." Their mouths say one thing, but their hearts are all about business. However, the wise king is not to be trifled with; having received so much money, distributing a bit is enough to cultivate a batch of loyal supporters. Moreover, theoretically, it’s not just this money; it can also be copied for AMD, Texas Instruments, and other companies. First, gather the money, then redistribute it; this is how one’s own faction is established. The wise king’s reputation is not important; anyway, he will be scolded regardless, so it’s better to allocate while being scolded. Even those who oppose the wise king will inevitably shake hands and make peace as long as they receive benefits. "Shang Yang's reform" tells us that reforms cannot happen without interest groups; without an interest group, there can be no faction. Without a faction, there is no foundation.