Xie Jinhe pointed out that on the eve of the U.S. midterm elections, different camps have clearly defined barriers between supporting AI and opposing AI. However, U.S. President Trump, whose support has declined, has stepped out to support AI in a high-profile manner, adding firewood to the recent long-short tug-of-war in the AI industry, and the competition between the United States and China in AI has further escalated. (Reuters photo)
[Instant News/Comprehensive Report] Xie Jinhe, chairman of Caixin Media Group, pointed out that on the eve of the U.S. midterm elections, different camps have clearly defined barriers to support and anti-AI. However, U.S. President Trump, whose support has declined, has jumped out to support AI in a high-profile manner, adding firewood to the recent long-short tug-of-war in the AI industry, and the competition between the United States and China in AI has further escalated. However, Xie Jinhe likened that the United States and China both buy shovels, while Taiwan sells shovels. On the AI track, Taiwan is the big winner!
Xie Jinhe posted a post on Facebook with the title "Trump is playing big again" and pointed out that on the eve of the mid-term election, when Trump's poll support fell to 32%, Trump once again resorted to new tactics, just like the Space Force in the Trump 1.0 era. This time he threw out an AI Force. He believed that the establishment of this AI force could contribute 25% to the US GDP, and he would fully support the development of the AI industry! Trump also said that there have been a lot of denigrations about AI recently, from the bubble theory to the idea that AI will run out of control and exterminate humanity, all of which are scams.
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Xie Jinhe said that Trump’s high-profile support for AI has also added firewood to the recent long-short tug-of-war in the AI industry. On the 21st, Huida and TSMC ADRs both rose by more than 2%, AMD surged by nearly 10%, and the market value exceeded US$1 trillion. Intel also joined the ranks of surges.
Xie Jinhe mentioned that on the eve of the midterm elections in the United States, there were clear barriers between states supporting AI and opposing AI. Some states opposed the establishment of data centers, and some opposed the establishment of power plants. Many people said that AI was a bubble, and even said that AI was out of control and devouring humans. Trump has struck hard to bring AI back to the national strategic level and win the support of AI giants. On the other hand, the competition between the United States and China in AI will further escalate.
Xie Jinhe analyzed that Trump has brought AI to the national level, and China has long concentrated national resources on AI. From Deepseek last year to Kimi this year, China has used distillation techniques to develop large-scale language models at a lower cost, which also makes Open AI and Anthropic feel threatened. China has weaponized AI, not only restricting the outflow of talents, but also tightening control over strategic materials and technology. The United States has also blacklisted hundreds of Chinese companies.
Xie Jinhe bluntly said that this AI arms race will end up being very similar to the space race between the United States and the Soviet Union in the 1960s. The Soviet Union was the first to send astronauts into space, which shocked the United States. Later, President Kennedy gave a speech at Rice University and determined to send astronauts to the moon before the end of the 1960s! In 1969, Armstrong landed on the moon, taking the first step for mankind. The United States finally got rid of the Soviet threat.
Xie Jinhe pointed out that this time the AI game started with astronomical capital expenditures. The four major CSP companies in the United States have spent as much as US$745 billion in capital expenditures this year. They have issued bonds on a large scale this year, pushing up bond yields and causing the free cash flow of these large companies to become negative.
Xie Jinhe emphasized at the end of the article that the United States is investing wildly in AI and China must follow up. They all buy shovels, and Taiwan is a country that sells shovels! On the AI track, Taiwan is the big winner!
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