THE US-CHINA TECH WAR IS COMING FOR AI'S PLUMBING

Summary from the TLDR Hardware newsletter

The reported FCC ban on Chinese optical transceivers shows that the US-China tech war is expanding past chips and into the smallest links of AI's physical plumbing. Washington's concern centers on data theft, service disruption, and long-term dependence, since these modules sit physically embedded throughout the network and could theoretically carry malware. A sudden ban risks backfiring, as US suppliers can't match Chinese scale, leading hyperscalers like Amazon and Microsoft to face real supply disruption if forced to substitute quickly.