Gavekal Technologies

Chinese cloud service providers and artificial-intelligence-model companies are raising prices sharply amid surging inference demand, increasing hardware costs, and limited access to advanced chips. Tighter US export enforcement is expected to have a big impact on the grey-market flows of Nvidia chips into China, while the availability of export-compliant chips remains uncertain amid supply chain and regulatory uncertainties. While this creates opportunities for domestic chips, scaling is limited by capacity constraints and compliance risks. As a result, the AI compute shortage is unlikely to ease in the near term, benefiting firms that control scarce compute resources.

China’s electric vehicle industry is going through a soft patch that signals the start of a consolidation phase that will make the top players stronger, both at home and abroad. In this edition of Gavekal Technologies Briefing, we lay out the key EV trends for this year.