

The whole transportation business run on diesel. There are currently no good truck EVs and if there are they will require special charging stations, so it would be very difficult to change to renewables and EV overnight.
We will still be dependent on petrol though, but much less, but petrol is needed in the chemical industry for the production of plastic, for plane fuel, etc.



And right now China is trying to catch up with that technology. They might be lagging today, but they are a huge market, and they will eventually catch up, maybe not completely but enough to be competitive.
Plus their LLMs need a lot less hardware resources for inferences.
Don’t forget that all US frontier models are operating at a huge loss, because if they need to charge market rates their market will shrink significantly.
So this GPU crunch is forcing Chinese labs to innovate and find clever ways to achieve higher intelligence with constrained resources.
And cloud and computing cost will only go up now, due to exploding hardware prices, which will make the whole business model of the US frontier models even more unprofitable.