Speaker 1: China just unveiled a new piece of technology that is disrupting the entire tech world. But what's more fascinating about this development is the timing of its release and what it means for the future of US-China relations. On January 20th, the very same day that Donald Trump was sworn in as the 47th president of the United States, China released DeepSeek R1, an advanced AI tool designed for deep data analysis that is an immediate rival to America's OpenAI. It took Google and OpenAI years and billions

Speaker 2: of dollars to build the latest AI large language models, but now a Chinese research lab has built a competitive model in just two months with dumbed down GPUs for less than, get this, $6 million. Not billion, $6 million. This is the biggest story coming out of

Speaker 1: China right now because it will change the future of tech around the world. But once again, I want you to focus on the timing of this event. Make no mistake, China waited to release this impressive development the morning of Donald Trump's inauguration to send a strong signal to the US government. Under the Biden regime, the US government passed unprecedented tech sanctions against China, hoping to contain the country's rise. At the very moment Trump ascended into power, China launched this new AI platform to send a clear and stern message to the Trump administration. Not only have we managed to survive the previous administration's sanctions, we've managed to thrive. China's new AI software performs just as well as its American counterpart, but China did it with half the technology and at a fraction of the cost. Even more incredible, China is making its new AI tool open source, allowing anyone to view, modify, distribute, and use this new software. OpenAI's moat may be shrinking. If a

Speaker 2: model like DeepSea can emerge with competitive performance, minimal cost, and reliance on existing outputs, it signals a rapidly shrinking barrier to entry in AI development, challenging the current dominance of industry leaders like OpenAI and Google,

Speaker 1: Anthropic, and Meta, by the way. There is no doubt many Silicon Valley CEOs are genuinely concerned and worried about the future. The AI industry is supposed to be dominated by American tech companies like Nvidia, Google, and Meta. But once again, China has managed to overcome obstacles and accomplish the unimaginable. But to show you just how remarkable this development is, I want to take you back to May 2024, when former Google CEO Eric Schmidt spoke with Bloomberg and confidently proclaimed the future of AI is firmly in the United States control. It was quite the bold statement from the former Google executive, who is one of the most influential voices in the United States AI industry. Fast forward to November, just six months after that video was recorded, and Eric Schmidt completely changed his tune. In a speech to Harvard University, he shared that Chinese companies Alibaba and Tencent were quickly closing the AI gap, leaving Schmidt to admit to everyone in the audience, I thought the restrictions we placed on chips would keep them back. This is shocking to me. Everyone, there's a lot to unpack in today's episode as we start a new chapter in US-China relations with the return of Donald Trump to the White House. I'm going to break down everything you need to know and also reveal how you can profit from Donald Trump's presidency by studying geopolitics and observing market trends. Later in today's video, I'll show you a company who operates an innovative model in the gold sector in my home state of Nevada and has major 2025 goals. But first, let's break down everything you need to know about China's new tech breakthrough and what it means for the upcoming trade war with Trump back in the White House. Let's start our analysis by studying this map, which shows the US government's latest restrictions on AI chips. The US is explicitly trying to prevent non-Western countries from developing AI technology by only giving full access to America's closest allies labeled in blue. It's a bold strategy because the US government has excluded many of its close allies and trading partners from tier one status. Just take Mexico and India, for example. Both of these countries should be considered close allies of the United States, but both were given tier two status, meaning the US government wants to also hold back their ability to develop as well. The United States is going to upset a lot of countries around the world with this new policy, and it's quite ironic, as the US government has preached for years the virtues of free trade to the rest of the world. In reality, the US government is only interested in maintaining its global hegemony. And it's situations like this when I'm reminded of this internet meme, which showcases the international community you always hear about. When Donald Trump first started the trade war with China in 2018, he wanted to accomplish two goals. Number one, reduce the United States trade deficit with China, and number two, limit China's global position in manufacturing. But here we are, seven years later, and the trade war has failed at both of these objectives. Earlier this month, it was reported that China's trade surplus reached a new record of nearly $1 trillion. Since the beginning of the trade war in 2018, China's trade surplus has literally done nothing but increase. The Wall Street Journal even published this story just four days before Trump's return to the White House, warning the new administration that China has a $1 trillion head start in any tariff fight. Even the United States' secondary goal of reducing China's global position in manufacturing has also failed. According to data from the United Nations, China today accounts for around 27% of global industrial production, up from 24% in 2018. By 2030, the UN predicts China's share of industry will have risen to 45%. The cold hard truth is despite all of America's efforts to stop China, Chinese factories are dominating global manufacturing on a scale not experienced by any country since the United States after World War II. Kishore Mapubani, Singapore's former ambassador to the United Nations, recently gave a cautious warning to Washington that the U.S. government is going down a very dangerous path. The whole world will move towards relying on Chinese companies for a whole range of products. If the U.S. tries to decouple from Chinese companies and their global reach, the U.S. is not just decoupling from China, it is decoupling from the rest of the world too. Donald Trump's trade war has set off a globalization frenzy among Chinese companies, and in many sectors, the majority of these companies are implementing going global plans that would not have taken place as rapidly had there not been tariffs from the U.S. government. This chart is quite fascinating as it compares the amount of foreign companies in China to the amount of Chinese companies abroad. Notice how wide the gap is now. While foreign brands in China have decreased in recent years, Chinese brands are expanding aggressively overseas. What we are witnessing in real time is that America's efforts to contain China have resulted in China accelerating its progress in many important industries, and there is no greater case study to examine China's progress in both semiconductors and AI. For many years, China imported hundreds of billions of dollars worth of American microchips. At the time, China was more than happy to be the United States' number one customer, but when the U.S. cut off China, all of those resources were redirected back into domestic Chinese companies, which are now seeing more profitability, greater capability, and more scope to invest in research and development. The United States has basically forced Chinese tech companies to accomplish something they didn't need to achieve before, and this is how China was able to develop DeepSeek R1, the new open-source AI tool that has every Silicon Valley tech executive worried about the future. The first reason for concern is that China has proven you don't need hundreds of billions of dollars to produce the software, and tech insiders simply can't believe how China built a rival to open AI in less than two months with a budget of only $6 million. Why the difference in price? Like, what am I getting

Speaker 3: for five and a half million versus a billion? That's the thing. You're basically getting a

Speaker 2: model that's as good as the frontier models that open AI and Lama have created. I can't stress

Speaker 1: enough how big a deal this is to the future of America's tech industry. This blog post from the AI team at Meta has gone viral, and it exposes a massive problem for Mark Zuckerberg and other Silicon Valley executives. Engineers are moving frantically to dissect DeepSeek and copy anything and everything we can from it. I'm not even exaggerating. Management is worried about justifying the massive cost of Gen AI Org. How would they face the leadership when every single leader of Gen AI Org is making more than what it costs to train DeepSeek V3 entirely? And we have dozens of such leaders. After living in China for over a decade, I've come to realize that finding solutions to complex problems is literally in the Chinese DNA, and one should never count against China's ability to innovate. Ten years ago, Harvard Business Review was publishing articles claiming China has no ability to innovate. But fast forward to today, and we now have some of America's most prolific tech investors, like billionaire Mark Andreessen, who helped build the world's first web browser state. DeepSeek R1 is one of the most amazing and impressive breakthroughs I've ever seen, and as open source, a profound gift to the world. To be honest, this story goes much deeper than a breakthrough in AI development. The world is now waking up to the reality that China has officially caught up and is overtaking the US in tech and innovation, despite America's best efforts to stop China's rise. From Stanford to MIT, China's DeepSeek R1 has become the model of choice for America's top university researchers, basically overnight. And to be honest, it's quite easy to see why. Independent third-party testing has shown that China's DeepSeek R1 is almost identical in terms of quality to the United States' OpenAI, as shown in this graph. But what's most impressive is the price point. DeepSeek R1's output price is literally 30 times cheaper than OpenAI. Once again, I'm going to share with you the insights from America's famous tech billionaire, Mark Andreessen, who states, this week may have been the most important week of the decade for two totally different reasons. Mark is certainly referring to the re-election of Donald Trump and China's new AI development. It's quite the bold statement to claim that both of these events will define this decade, but in many ways, it's certainly true. As we've proven in today's video, DeepSeek R1 has changed the entire tech industry upside down overnight. And with the return of Donald Trump to the White House, there will be a lot of uncertainty for the future of geopolitics and world trade. Will Donald Trump double down on his efforts to contain China, or will he seek to work with China and make the world a better place? I certainly hope the US and China can work together, because as this MIT Technology Review article states, there can be no winners in a US-China AI arms race. Interesting enough, almost half of all the top AI researchers globally, some 47%, were born or educated in China, according to industry studies. Meaning that if the United States wants to influence the future of AI, they're going to have to do so by working with the Chinese. I'm going to include a link to this MIT article and all my sources I've used in today's video in the description below. But as promised, I want to shift to the next segment of our video and show you an investing opportunity that directly correlates to Donald Trump's return to the White House. Take a look at this chart, which shows the lifetime performance of a junior gold mining ETF. From December 2010 to December 2015, during the Obama administration, this ETF was down 88%. But look at what happened to the ETF when Donald Trump was in the White House. It appreciated over 181%. During the Biden administration, the ETF once again fell over 33%. And since Trump won the election in November, until today, the ETF once again rose by 32%. I love data and observing market trends, because no matter who is in the White House, there will always be opportunities in the market. With Trump's return as president, there will be several industries that experience a bull market and mineral mining is one of them, as Donald Trump wants to ensure the future of the United States is secure. Today's sponsor is Nevada Canyon Gold, which trades under the symbol NGLD and is doing business in the world's premier jurisdiction of Nevada, which is also the state that I live in myself. Nevada Canyon Gold is executing the most cost-effective model, using royalties and streaming, and deploying these in a first-to-market strategy. The main reason I'm profiling it today is because the stock fell by 85% during Biden's reign. But in the past month, with the return of Trump to the White House, the stock has already rebounded some 98%. And now let's once again look at gold miners' bull market runs, and we can see appreciations of 596%, 554%, 1,330%, and 273%. Nevada Canyon Gold seeks to unlock the untapped potential of Nevada's legendary mining districts and uses a unique business model that is redefining how royalties, streaming, and exploration in the gold mining sector look. I live full-time here in Las Vegas, Nevada, and this state is the gold capital of the U.S., accounting for 76% of the nation's production. In fact, if Nevada were a country, it would rank as the fifth-largest gold producer globally, surpassing nations like Canada and Peru. Nevada Canyon's innovative approach avoids the high capital costs of mining operations and instead focuses on royalty and streaming agreements. The company secures rights to production while maintaining low overhead. This scalable model ensures steady returns without the risks and costs associated with traditional mining ventures. The company's CEO has driven the roads of Nevada's gold mining regions for the past 30 years and worked with the world's biggest mining companies. His database of projects in Nevada is as good as it gets. The innovative royalty, streaming, and exploration accelerator model the company is implementing is one of the first in the mining sector. And Donald Trump's deregulation in the mining sector would lower costs and expedite project approvals, making U.S. gold miners more competitive, which is why I am profiling Nevada Canyon Gold. But let's look at the upside. Gold stocks are down 73% since 2011, while the actual price of gold is up nearly 40%. How can the metal be up 40% since 2011, but the miners are down 73%? This presents a potential massive opportunity as gold is broken out after a four-year consolidation. Robert List, Governor of Nevada from 1979 to 1983, joined the board of directors at Nevada Canyon Gold, and Governor List will be a great asset to the company as he has been appointed to boards and commissions in the administrations of President Nixon, Ford, Reagan, and George H.W. Bush. But once again, here are the compelling storylines for this company. Nevada Canyon Gold is down 80% from its peak market cap. It has already bottomed recently and begun its upward trend. 2. It's a pure play on Nevada's gold, just as President Trump comes in with a pro-business, mining approach. 3. Its business model is superior, with a revolutionary approach to royalties, streaming, and accelerator. But most importantly, gold stocks are very cheap historically. If we look at gold-to-equities ratio, mining equities are still trading at significant discounts compared to previous bull cycles, such as 2011 and 1980. If we look at price-to-cash flow, many gold miners are trading at multiples between 6-10, significantly lower than the broader S&P 500, which often exceeds 15-20. In the 2011 gold peak, miners traded closer to 15. At the end of the day, I'd love to see a local company in my home state of Nevada succeed, and it's definitely a company I'm going to watch very closely moving forward with the Trump administration now back in power. If you would like to learn more about Nevada Canyon Gold, I'm going to include links to the investor presentation, website, and stock ticker down below. But as always, please do your own research before making any investments. And finally, if you enjoyed today's episode about China's new AI developments, drop me a comment down below, and thank you for your incredible support. I look forward to seeing you all in our next video soon.