Red alert: The AI bloodbath is not over yet!

The US has just announced that it can sanction China AI companies for distillation theft.  Why is the real reason for the US to do this?

The truth is not to punish China for the distillation theft but the US is losing the AI competition to China.  The US AI industry will collapse when more americans are using China AI (see below) because many americans won't pay for the higher prices of US AI when the cheaper or free China AI is on par or better (look at the below chart).

Therefore, there will be heavy knee-jerk reactions to the AI stocks when the US and China start to sanction each other.  Let's watch how this will unfold.