China&#x27;s AI industry has changed a lot since DeepSeek released its cheap frontier model last year, and briefly sent US tech stocks falling. After being locked out of the most advanced chips, Chinese companies are now allowed to buy some Nvidia H200s. In fact, many of the big Chinese tech companies — like Baidu — are making a push to become full-stack players, with their own chips, models, and cloud infrastructure. Today&#x27;s guest is Grace Shao, an independent AI researcher and the author of the AI Proem Substack. She&#x27;s a bit of an insider when it comes to China&#x27;s AI industry, and when we were in Hong Kong we spoke with her about the latest in open-source models, the competition among Chinese frontier labs, DeepSeek&#x27;s place in an increasingly crowded Chinese AI market, China&#x27;s manufacturing edge, where bottlenecks exist right now (spoiler: it isn&#x27;t data centers), if Chinese grandmas are actually using OpenClaw, and finally, of course, AI psychosis.<br>Read More:China AI Lab’s 170% Stock Surge Cements Winner-Loser Pair Trade China Plans Mechanism to Evaluate AI Impacts on Job Market<br>Only http://Bloomberg.com subscribers can get the Odd Lots newsletter in their inbox each week, plus unlimited access to the site and app. Subscribe at bloomberg.com/subscriptions/oddlots<br>Subscribe to the Odd Lots NewsletterJoin the conversation: discord.gg/oddlots<br>See omnystudio.com/listener for privacy information.

Grace Shao on What the World Should Know About Chinese AI

Odd Lots

# Full Transcript

**Podcast:** Odd Lots

## Participants

- **Joe Weisenthal** (Bloomberg)
- **Tracy Alloway** (Bloomberg)
- **Grace Hsiao** (Independent AI Researcher / AI Prom)

## Transcript

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Hello, and welcome to another episode of the Odd Lots podcast. I'm Joe Weisenthal. And I'm Tracy Alloway. Tracy, I love being in Hong Kong. I love it here so much. I love it here so much. I would, like, come here a few times a year if we could. I'm sure you would. I've lived here for, like, I guess almost four years, so it's kind of weird coming back. But Hong Kong has a lot of pluses, like great food, great weather for most of the year, beaches.

I once heard someone describe it as Manhattan meets Maui, which I think is, like, pretty accurate. Oh, it's so nice. The weather is actually not great. It's not great right now. It's definitely this week. We've come during a, I guess it's a monsoon season, right? Yeah, it's the rainy season. But oh well, I like thunderstorms, so I'm enjoying it. Yeah, I'm enjoying it too. Anyway, one thing that has changed since the last time you were in Hong Kong, you left in 2022. Yeah. We weren't doing as many AI episodes in those days, to say the least.

In fact, so I remember one of the big stories whe...

Grace Shao on What the World Should Know About Chinese AI

Transcript

Built for investment professionals

Every day you wait, your competitors are finding
edge in conversations you're not hearing.

Grace Shao on What the World Should Know About Chinese AI

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.