> It's hard to say what their motivation is. Involution is a major problem in Chinese industries [1]. Where companies will sell their products at a loss, effec

> It's hard to say what their motivation is. Involution is a major problem in Chinese industries [1]. Where companies will sell their products at a loss, effectively playing fiscal chicken [2] with one another to dominate a market. It is such an issue the government has had to step in to prevent EV companies from destroying themselves by more-or-less requiring companies sell their goods at a profit [3]. The straight forward line of reasoning that AI/LLM labs are applying this logic to their profit. I think (we) Americans are reading a bit too far into this assuming government intervention, conspiracy, etc.. Chinese markets are downright cut throat. They're using those tactics to compete with US labs. 1. https://www.reuters.com/business/autos-transportation/what-is-involution-chinas-race-to-the-bottom-competition-trend-2025-09-14/ https://www.reuters.com/business/autos-transportation/what-i... 2. https://en.wikipedia.org/wiki/Chicken_(game) https://en.wikipedia.org/wiki/Chicken_(game) 3. https://www.theguardian.com/business/2025/aug/05/china-warns-ev-makers-stop-price-cutting-production-involution https://www.theguardian.com/business/2025/aug/05/china-warns...