Shadow networks
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The Imminent Collapse of a NVIDIA-Fueled Bubble
The US-China AI chip battle escalates as Nvidia’s restricted H200 and B200 GPUs enter China via shadow networks during a 90-day tariff reprieve, fueling a volatile black market. Cloud giants face acute scarcity, while emerging hybrid supply chains disguise GPUs as industrial goods. Structural contradictions emerge: despite speculative bubbles and unviable projects, specialized AI adoption grows, exposing systemic bottlenecks in technical innovation, data readiness, and vertical integration. Government subsidies clash with industry demands for foundational ecosystem reforms as companies pivot to VC-driven compute models amid shifting demand from pre-training to inference workloads.
