“Necessity is the mother of invention. They didn't have the big chips. They didn't have the compute. So they optimized for smaller or RAM-intensive models when RAM was cheap. … And the biggest thing actually is that they don't do margins. So the Anthropic S1 was just interesting because they have huge margins, like 80%. And so did everyone else. And we all thought they were running at cost. In fact, they weren't.”

Number one, why are Chinese AI Market cheaper? Is it due to greater efficiency, government subsidies, or lower energy costs? That's from ROIR 4770. It's an interesting. I think necessity is the mother of invention. They didn't have the big chips. They didn't have the compute. So they optimized for smaller or RAM-intensive models when RAM was cheap. They obviously borrowed from US models as well, so they didn't have the same R ⁇ D. And the biggest thing actually is that they don't do margins. So the Anthropic S1 was just interesting because they have huge margins, like 80%. And so did everyone else. And we all thought they were running at cost. In fact, they weren't. So with that optimization, with that distillation, and with, again, the need to drive these things down, they did it. And the final element is sometimes just superb engineering. The deep seek details that came out of their inference, like it was astonishing when they released their inference stack how efficient they'd made it. And that's just good engineering, full stop. All right, Alex.