Part 2/12:
Schmidt describes a typical "San Francisco consensus," which envisions a progression from narrow AI agents to recursive self-improvement and eventually to AGI. This process requires tremendous hardware capabilities — including Google’s TPU (Tensor Processing Unit) supercomputers — and significant energy resources. He points out that U.S. restrictions on hardware exports to China could hamper China's ability to compete at this frontier level, while China appears to adopt a different strategy focused on integrating AI into everyday products and services.