Here are three really interesting, short videos. About one minute each.
In the past week the western stock markets have lost almost US$1.0 TRILLION (ONE TRILLION US DOLLARS) in market value. Among them was Nvidia which lost about US$600 Billion in its total market value.
All that because of a small Chinese company which has developed an AI 'language' called Deepseek for US$5.6 million, with just SIX engineers in the team which is outperforming Chat GPT, Google and Microsoft who spent tens of billions of US Dollars to develop their AIs.
Observers are now calling this a Sputnik moment in history - referring to the time when the Russians placed the first man made object, a tiny satellite called Sputnik, into space orbit around planet earth. That happened in 1957.
What does China's Deepseek mean? Well all those planned Data Centers are suddenly facing extinction. Data Centers are those super huge factory type buildings which will house hundreds of millions of US Dollars worth of computers and storage devices (the hardware) to store data - GIGABYTES, TERABYTES, PETABYTES - which is (or was) considered the backbone for AI (Artificial Intelligence).
From my understanding AI has been made possible by the development of super memory capacity and super fast computer chips - which companies like Invidia have been producing. These super chips allow the processing of tons of computer code (many magnitudes more than previous computer chips) which enables the chip to process even more computations per second.
With this type of new computing power the programmers can program robots to walk on their own, talk on their own, cars to drive by themselves, etc. All this is possible with the greatly expanded computing power of the new computer chips.
And these super computer chips use up a ton of electricity (and also generate plenty of heat). Hence the advent of Data Centers. Data Centers need huge amounts of electricity to store and process the huge amounts of data which are needed to power AI. Some say that in the US they may need to increase their total electric power supply by 15% to meet the needs of all the Data Centers that are being planned.
There was also talk of "pelabur asing" planning to invest in Data Centers here in Malaysia to take advantage of our cheaper electricity tariffs (relative to US, Japan or Singapore).
Data Centers do not generate many jobs - 100 to 200 people can manage one multi billion Ringgit Data Center. But they use tons of electricity.
Well not anymore. The new Chinese Deepseek AI language uses 1/100 or 0.01 or 1% of the computer chips used by the American AI. This means their electricity consumption should also be 1/100 or just 1% of the American Data Centers.
Hence that recent announcement by President Donald Trump's friends that they will invest US$500 Billion in new Data Centers around the US has just gone up in smoke. It is not going to happen.
And the share price of Nvidia stock took a beating with Nvidia shares losing US$600 billion in market value.
Folks, Tuan-Tuan this is the Chinese Freight Train that is rolling over the whole world.
This year 2025 will be the year that major car manufacturers like BMW, Volkswagen, maybe Mercedes, other European and American manufacturers as well as Japanese car manufacturers CAN GO OUT OF BUSINESS. They are certainly already suffering major losses.
The Chinese Freight Train has even demolished durian exports from Vietnam, Thailand and Malaysia because China has now begun exporting their own durians (500,000 tons in 2024).
Why is this happening at such a rapid pace? The answer is because of something called the Chinese people. Here are the three short videos that you must watch.
The first video here shows Chinese policemen on patrol duty accompanied by a Star Wars type robot. This is in a relatively small yet super modern Chinese city which you and I have never heard of before (Wenzhou?)
The next short video shows a Chinese factory mass producing humanoid robots. These are not toys or prototypes for show. These are real robots which will be bought by the Chinese people to be used in their homes, their factories, restaurants and businesses. Notice how "thin" they are. Because with super efficient AI (like Deepseek) the robot can be small, use less electricity, yet perform a greater range of tasks.
I call all this the Chinese "Democratisation of Technology". Democratisation of Technology means making the highest and latest technologies available to the ordinary man in the street as soon as possible and as cheap as possible. The Chinese simply flood their market with high technology. This is what the Chinese have been doing. This is their philosophy.
The Chinese began their Democratisation of Technology more than 20 years ago with their electronic payments systems. Everywhere in China people do not carry cash. First they had swipe cards. Then they moved to the smart phones. The rest of the world has caught up - but later.
Then they latched onto robotics. Everywhere in China there are robots. Restaurants have robot waiters (for some time already), they have robot chefs. Supermarkets have robots. Hence it is just another step up the robot ladder which you can see in the two videos above.
As soon as they develop the latest cutting edge technology, they push it out to the general population down at the street level. So that the productivity of the general population in China will also be at the cutting edge. Grandmas and grandpas will understand robotics.
Here in Malaysia we still dont see many solar panels on people's rooftops. Because the philosophy here is NOT TO MAKE AVAILABLE the latest (solar) technology to the general population. Some years ago, during the kleptocratic regime, the import of solar panels was 'monopolised' by one or two companies only. They set up a monopoly situation. Solar panels were super expensive.
Then there were arm twisting regulations which really did not encourage the general Malaysian public from installing solar panels on our rooftops. (Obviously to protect the market share of the electricity monopoly in the country). Until today you can rarely see solar panels on our rooftops. Only a few, usually in the wealthier homes. Because it is still expensive.
The Chinese philosophy is different - when the prices of Chinese solar panels started to CRASH (yes the prices have CRASHED) they pushed out even more solar panels to the public so that the Chinese people can have access to cheaper "renewable" electricity.
Today the prices of Chinese solar panels have crashed so much that they can generate one unit or one kWh (one kilowatt hour) of electricity for 18 sen or even lower than that.
(In sharp contrast in Malaysia gas fired power generation costs (approximately) about 38 sen to 45 sen per kWh - according to a friend who is a financial consultant to the industry).
So you see, it is this difference in philosophy - the Democratisation of Technology - to immediately improve the lives and the standard of living of the Chinese people which has created the Chinese Freight Train.
When every man, woman, child, grandfather and grandmother in China is exposed to such an abundance of cutting edge and affordable technology, the entire Chinese society immediately becomes a very high technology society. High technology is so cheap and so abundant that it becomes 'child's play'. The Chinese people will develop even higher technologies. Otherwise they will not be able to compete among themselves.
The Chinese are not really competing with the world anymore. (Nvidia has crashed, Data Centers are possibly dead. BMW might shut down this year). The Chinese are competing among themselves.
Have you been to Beijing? The city stretches over 105 miles north to south. Or over 170 km. That is the distance from Ipoh to Penang. But Beijing is NOT the largest city in China.
The largest city in China (and in the world) is Chongqing. Greater Chongqing has a population of 32 million people and occupies an area of 82,339 square km, roughly the size of Austria in Europe.
Here is another less than one minute video.
This is what the Chinese are doing. They are so focussed.
In Malaysia there is one fool going around plucking his feathers over 'chicken ham sandwiches' and another fool wants to rebuild someone else's country.
