Good morning, readers!

Money, tech, military—we have everything today. Here’s a sneak peek:

• 🇨🇳 China’s tech firms go on a GPU shopping spree.

• 🇷🇺 Russia launches its “digital Ruble” in order to resuscitate its plunging currency.

• 🌍 ECOWAS mobilizes its troops.

Today’s geopolitics hotspots:

China’s $5 billion GPU shopping (before it's too late)

China’s biggest internet and cloud companies are scrambling to buy as many Nvidia GPUs as they can before new US restrictions make it harder for them to access the latest AI technology.

$1 billion

• Alibaba, Baidu, ByteDance, and Tencent have collectively spent approximately $1 billion for 100,000 Nvidia A800 GPUs.

• The A800 model is a "nerfed" version of Nvidia's A100, aimed at bypassing performance limitations imposed on the export of American AI accelerators to China.

$4 billion

• Additionally, they also committed another $4 billion worth of GPUs scheduled for delivery in the following year. However, not much is known about the specifics of the card models.

Why it matters

We've recently seen a crazy rocketing of Nvidia stock price. This was largely due to investors recognizing the importance of GPUs in AI technology. Well, that and a spoonful of hype.

• Many Chinese firms are also jumping into the scene, crafting their own large language model (LLMs) that are similar to ChatGPT. Without these advanced chips, these firms can't train any substantial LLMs.

• The US is also concerned about China leveraging American technology to advance its military capabilities, potentially posing a challenge to US military supremacy.

How China is crushing Hong Kong’s last hope

Hong Kong police have arrested 10 people linked to a fund that was set up to help protesters during the 2019 anti-government demonstrations. They are accused of colluding with foreign forces to endanger national security, a crime under the controversial national security law.

What is the fund?

• The 612 Humanitarian Relief Fund was established in June 2019, by prominent pro-democracy figures, with the intention of providing financial aid to those facing legal or health issues due to their participation in the pro-democracy protests.

• The fund amassed more than HKD$250 million in funds, primarily through online crowdfunding and generous donations.

• However, the fund’s trustees disbanded it in July this year, citing legal risks and difficulties in operating under the national security law.

What is the national security law?

• The legislation was enacted by China on June 2020

• It criminalizes four types of activities: secession, subversion, terrorism, and collusion with foreign or external forces.

• The law also gives Beijing more powers to intervene in Hong Kong’s affairs, such as appointing a national security adviser, setting up a national security commission, and sending some cases to be tried in mainland China.

Quick updates