AI PROMISE AND CHIP PRECARIOUSNESS

Summary from the TLDR newsletter

There is currently sufficient incentive for the leading research labs to raise money and continue investing in new foundation models, even as competition drives API prices down relentlessly. Getting to a future where the US has a strong AI industry running on US-made chips will take significant interventions in the market to undo the overwhelming incentives for US companies to simply rely on TSMC. Such a shift will take time, which is why making Taiwan indispensable to China's technology industry is the price that needs to be paid in the meantime.