Bloomberg reported that "Malaysia declared it'll build a first-of-its-kind AI system powered by Huawei Technologies Co. chips, only to distance itself from that statement a day later, underscoring the Asian nation's delicate position in the US-Chinese AI race."
US claimed that the use of Huawei AI chips could violate US export controls. US probably made the assessment without even having access to the chip yet. But it might have a point that any semiconductor and chip design will have some underlying US company technology, which is off limit to Huawei.
Malaysia needs to handle the situation delicately. To the US, Malaysia either chooses Chinese or US, but not both. So our previous discussion about YTL Power running separate AI data centres based on Nvidia and Huawei chips is unlikely to happen.
I also wonder how US will respond to Malaysia's decision to roll out second 5G on Huawei network by U Mobile.
Could all these, together with the on-going trade negotiations, pose a risk to the future Nvidia's GPU availability?
I see this differently. Malaysia ministry statement was likely to be tactical, in a way telling the US that we have alternatives to Nvidia AI chips in building our sovereign AI and developing AI infrastructure for our own use. It is true that we do not need the most powerful chips from Nvidia for our purposes here, Huawei 910C would suffice to do the job.
We can see how Trump has pivoted away from Biden's AI diffusion rules, more obviously from his recent trip to the Middle East with Trump promising a couple of countries there supply of hundreds of thousand of Nvidia AI chips if they do not use China chips.
There is no way to ensure these Nvidia chips after arriving in Saudi or Qatar will not be transported to other countries like China and Russia, or being used by China Big Techs setting up data centers in the Middle East. Even if the US finds out later, it cannot do much as the chips have been supplied away.
It is the same situation here in Malaysia. Statistics show that the April shipments of chips & server racks from Taiwan to Malaysia hit a record high of US$3 billion and some commentators are alluding to smuggling but if we refer to the data center buildups this year, the numbers will more than double its capacity, justifying the use of the AI chips from Taiwan in DCs in Malaysia.
With such a mad rush to import as many AI chips into Malaysia from Taiwan, you think the US or Nvidia don't know about it? Of course they do. But it is very unlikely the US can tell Malaysian companies what they can do and cannot do with the GPUs once they are on Malaysia soil.
Right now, Bytedance is using the latest Nvidia AI GPUs in Oracle DCs in the US so there is no way the US administration can tell other countries that Chinese companies cannot use Nvidia GPUs under their jurisdiction even in the trade negotiations.
I see that the US will either allow more Nvidia chips export to Malaysia, or allow us to use Huawei chips, there is no other way. Being a businessman, Trump or Jensen Huang will try to sell more Nvidia chips to us, rather than letting us pivot to China chips. Furthermore, the ministry statement was for using the AI chips to build our own sovereign AI, not for the use by any China companies.
To YTL Power, I still see that there is the possibility of leasing Huawei chips in its DC here to companies (American, China or local) or government agencies, unless the US allows more Nvidia chips exports to us.
When the bonus warrants go ex next Tuesday, YTL Power share price will be adjusted down by about 20 sen, so I think short sellers are waiting for this before they close their short positions. Short sellers will not be entitled to the bonus warrants, even if they close their short positions before the ex date.
As for dividends, it may not have much impact on short sellers, as any interim dividend to be declared at the upcoming Q3 will be about 2 to 3 sen, and the payout date will be further in July or later, so it will not have much impact on the mother share price.
Bloomberg reported that "Malaysia declared it'll build a first-of-its-kind AI system powered by Huawei Technologies Co. chips, only to distance itself from that statement a day later, underscoring the Asian nation's delicate position in the US-Chinese AI race."
US claimed that the use of Huawei AI chips could violate US export controls. US probably made the assessment without even having access to the chip yet. But it might have a point that any semiconductor and chip design will have some underlying US company technology, which is off limit to Huawei.
Malaysia needs to handle the situation delicately. To the US, Malaysia either chooses Chinese or US, but not both. So our previous discussion about YTL Power running separate AI data centres based on Nvidia and Huawei chips is unlikely to happen.
I also wonder how US will respond to Malaysia's decision to roll out second 5G on Huawei network by U Mobile.
Could all these, together with the on-going trade negotiations, pose a risk to the future Nvidia's GPU availability?
I see this differently. Malaysia ministry statement was likely to be tactical, in a way telling the US that we have alternatives to Nvidia AI chips in building our sovereign AI and developing AI infrastructure for our own use. It is true that we do not need the most powerful chips from Nvidia for our purposes here, Huawei 910C would suffice to do the job.
We can see how Trump has pivoted away from Biden's AI diffusion rules, more obviously from his recent trip to the Middle East with Trump promising a couple of countries there supply of hundreds of thousand of Nvidia AI chips if they do not use China chips.
There is no way to ensure these Nvidia chips after arriving in Saudi or Qatar will not be transported to other countries like China and Russia, or being used by China Big Techs setting up data centers in the Middle East. Even if the US finds out later, it cannot do much as the chips have been supplied away.
It is the same situation here in Malaysia. Statistics show that the April shipments of chips & server racks from Taiwan to Malaysia hit a record high of US$3 billion and some commentators are alluding to smuggling but if we refer to the data center buildups this year, the numbers will more than double its capacity, justifying the use of the AI chips from Taiwan in DCs in Malaysia.
With such a mad rush to import as many AI chips into Malaysia from Taiwan, you think the US or Nvidia don't know about it? Of course they do. But it is very unlikely the US can tell Malaysian companies what they can do and cannot do with the GPUs once they are on Malaysia soil.
Right now, Bytedance is using the latest Nvidia AI GPUs in Oracle DCs in the US so there is no way the US administration can tell other countries that Chinese companies cannot use Nvidia GPUs under their jurisdiction even in the trade negotiations.
I see that the US will either allow more Nvidia chips export to Malaysia, or allow us to use Huawei chips, there is no other way. Being a businessman, Trump or Jensen Huang will try to sell more Nvidia chips to us, rather than letting us pivot to China chips. Furthermore, the ministry statement was for using the AI chips to build our own sovereign AI, not for the use by any China companies.
To YTL Power, I still see that there is the possibility of leasing Huawei chips in its DC here to companies (American, China or local) or government agencies, unless the US allows more Nvidia chips exports to us.
MrDragon，ytlpower的红股权证和股息，对卖空者有没有影响呢？（例如付额外的利息或要买更多的股票填补回去？）
When the bonus warrants go ex next Tuesday, YTL Power share price will be adjusted down by about 20 sen, so I think short sellers are waiting for this before they close their short positions. Short sellers will not be entitled to the bonus warrants, even if they close their short positions before the ex date.
As for dividends, it may not have much impact on short sellers, as any interim dividend to be declared at the upcoming Q3 will be about 2 to 3 sen, and the payout date will be further in July or later, so it will not have much impact on the mother share price.