Moore Threads: A Race to Develop a Self-Sufficient AI Ecosystem

CGTN Europe spoke to Joshua Mahony, Chief Market Analyst at Scope Markets.

Transcript

00:00Let's talk to Joshua Mahoney, he's Chief Market Analyst at Scope Markets.

00:03Always great to see you, Joshua.

00:05Tell us a little bit more about MoreThread.

00:08Is it China's NVIDIA?

00:12Well, in some ways you could say that, certainly as you've alluded to,

00:15the fact that it's being led by what was the general manager of China at NVIDIA.

00:20They essentially started operations roughly five years ago.

00:24So you've got to bear in mind that they're well behind NVIDIA

00:27on this search to become a global GPU producer.

00:32Ultimately, we're now in a position where the Chinese have realized

00:35they have to become self-sufficient in this.

00:37So you're talking about a company that is part of a push

00:41to try and develop a fully vertically integrated AI ecosystem.

00:47And essentially, this is them pushing one of the main producers of GPUs in China

00:52to the forefront, but of course they need funding.

00:55And so the ability to get them to market as quickly as possible will be absolutely key here.

01:01And so certainly you would hope that down the line they're going to be able to become

01:05a competitor with NVIDIA.

01:07But certainly as things stand, if you're looking at the really sort of cutting edge chips,

01:11they're still quite far behind on that front.

01:14But certainly things take time.

01:16And this is part of a concerted effort by the Chinese to be able to compete

01:21and be able to create their own AI market, essentially, away from the products coming out of the U.S.

01:28So this is why you think that they're racing it through this 88 days from filing the application super fast, right?

01:34Yeah, I mean, it's no surprise.

01:38Ultimately, the style market is for companies just like this,

01:42companies that there is a sort of cutting edge to it.

01:47It's linked into the tech sector.

01:49It has a sort of national reason for getting to market as quickly as possible and getting funding.

01:56Generally, the average for a company to get onto the market is around 200 days.

01:59This is 88 days.

02:01So they want to get it to the market as quickly as possible.

02:03They're in a position where, yes, they might have some sort of agreement with the U.S. on some front,

02:08but there's still major question marks around the ability to gain these kind of chips.

02:14So certainly they need to get it funded and they need to get this expansion going as quickly as possible.

02:20And that's really why they've rushed this one through.

02:22Josh Mahoney, thanks so much.

02:24But don't go away.

02:25We'll get back to you a little bit later on in the show to talk about financial markets.