China's New AI Company Just Won Big…American CEOs in Shock

China's Historic IPO: More Threads Challenges Nvidia [0:00]

• More Threads, a Chinese GPU company, launched its IPO, becoming one of history's most successful.
• The company is positioning itself to directly challenge Nvidia in the global microchip industry, particularly in AI chips.
• The IPO was oversubscribed by an astounding 4,126 times, with total bids reaching $4.5 trillion, exceeding Nvidia's market cap.
• This indicates strong investor bullishness on domestic Chinese tech and the intensity of the US-China tech rivalry.

  "And that tells you everything about how bullish Chinese investors are on domestic tech and how intense the US China tech rivalry has become."

China's Chip Industry Ambitions [01:36]

• An Economist article titled "China's Chip Industry Will Surprise the World" predicts China's advancements in designing and manufacturing powerful AI chips by 2026.
• Chinese firms are pushing into areas previously thought beyond their reach, driven by innovation in silicon.
• Deepseek, a Chinese startup, launched an AI model in January 2025 that challenged OpenAI, built with a fraction of the budget and without access to Nvidia's advanced chips, demonstrating China's ability to innovate around sanctions.
• This momentum is flowing into China's chip industry, including companies like More Threads.

  "Chinese firms will push ahead in two areas long thought beyond their reach. Designing and manufacturing powerful AI chips."

US Sanctions Backfiring: Jensen Huang's Warning [02:29]

• Nvidia CEO Jensen Huang stated that US export controls on China have backfired, calling them "the dumbest thing we've ever done."
• He believes these controls have given China a "national mobilization mission on steroids," accelerating their progress rather than stopping it.
• Huang predicts that by 2027, China will have more AI compute power than the rest of the world combined.
• This sentiment from Nvidia's CEO highlights the unintended consequences of US policy on China's technological development.

  "You've just given them the best national mobilization mission in 50 years. It's like the Sputnik moment on steroids."

Gina Raimondo's Admission and US Policy Failure [03:32]

• Gina Raimondo, former US Secretary of Commerce, admitted that US sanctions have failed to hobble Chinese companies like Huawei.
• She described China's industrial policy as "massively effective" and "stunning," citing BYD cars and Huawei's chip advancements as examples.
• Raimondo's 2022 statements reveal a strategy to impose export controls to limit China's access to advanced computing chips for AI, with the goal of maintaining a US lead and protecting national security.
• Despite these efforts, China's AI industry is exploding, with More Threads poised to make history.

  "China has a massively effective industrial policy. It's amazing. It's stunning."

More Threads: Building China's GPU Ecosystem [04:51]

• More Threads, founded in 2020 by James Jang, aims to build an entire GPU ecosystem in China, encompassing hardware, developer tools, and AI training frameworks.
• Nvidia's dominance is attributed to CUDA, a software layer that enables AI engineers to train models and process data.
• More Threads has successfully developed Musa, a software layer compatible with Nvidia's ecosystem, allowing Chinese developers to work with their hardware using familiar tools.
• This achievement, considered to be a decade-long endeavor by experts, was accomplished by More Threads in just a few years.

  "CUDA is simply the operating system and software layer that allows AI engineers to train models, run simulations, build video games, and process massive amounts of data."

Strategic Investment and Rapid Innovation [06:50]

• James Jang's reputation attracted top engineering talent from Nvidia, AMD, and leading Chinese tech platforms to More Threads.
• Major Chinese companies including ByteDance, Tencent, and Sequoia China invested heavily in More Threads, signaling its importance to China's long-term AI strategy.
• More Threads has released four GPU generations in four years, a pace unheard of in the microchip industry, with its latest architecture capable of training trillion-parameter AI models.
• This positions More Threads as a key domestic supplier for companies like Deepseek, training frontier-scale models within China.

  "While companies like Nvidia and AMD typically release a major GPU architecture every 2 to 3 years, More Threads has released four generations in just 4 years, a speed of innovation that is unheard of in the microchip industry."

The Unbelievable IPO and National Strategy [07:47]

• More Threads received regulatory approval for its IPO in just 90 days, indicating its strategic importance to Beijing.
• The IPO was oversubscribed by 4,126 times, with bids totaling 33 trillion yuan ($4.5 trillion USD), more than Nvidia's market cap.
• This demonstrates that while some Western narratives point to China's economic collapse, strategic industries are booming.
• Beijing views compute as crucial for the next industrial revolution, AI breakthroughs, national security, and cloud infrastructure.

  "When China's government and its biggest tech companies invest side by side, that's not just excitement. It's a clear signal of China's long-term national strategy."

Resilience Under Sanctions and Filling the Vacuum [09:20]

• More Threads raised 8 billion yuan ($1.12 billion USD) at a $17.5 billion valuation on day one, exceeding the typical valuation timeline for chip startups.
• Despite being placed on the US entity list in 2023, More Threads doubled down, restructured, and declared its resolve to build world-class GPUs.
• Domestic AI demand exploded, and the company emerged stronger, filling the vacuum left by Nvidia's departure from the Chinese market due to export controls.
• Nvidia's market share in China dropped from 95% to effectively zero, creating an opportunity for companies like More Threads to build a self-reliant domestic ecosystem.

  "But More Threads is building something different, a world where China doesn't need Nvidia at all."

The Accelerating Global Tech Race: Humanoid Robots [10:28]

• The global technology race between the US and China has accelerated beyond expectations, with microchips remaining a precious resource.
• Competition is shifting to AI, automation, and a less-expected field: humanoid robots.
• Both nations see humanoid robots as the next major platform shift, capable of transforming manufacturing, defense, logistics, and the future of work.
• This represents the beginning of one of the most significant technological transitions of our lifetime, with humanoid robots still in their early stages of real-world deployment.

  "But the tech race is shifting into new areas of competition, especially in AI, automation, but also a field you might not have thought about before, and that is humanoid robots."

Humanoid Global Holdings: Investing in the Future of Robotics [11:33]

• Humanoid Global Holdings (RBF) is one of the few publicly traded companies offering exposure to the early-stage humanoid robotics sector.
• Humanoid robots offer potential productivity gains, theoretically operating up to 20 hours a day and providing up to four times the labor productivity of a human worker.
• The company has built a portfolio of indirect strategic investments in promising private companies within the humanoid ecosystem, providing retail investors access to these otherwise inaccessible firms.
• These investments include Agility Robotics (developer of Digit), Aptronic (creator of Apollo), Riot Scan (AI-powered safety platform), How to Robot (marketplace for automation), and Formic (robotics as a service).

  "For everyday investors, this is one of the only public vehicles offering access to these private robotics innovators, companies that are otherwise reserved for venture capital, institutional funds, or multinational tech giants."