Is the Democratic Party's restriction on AI development the reason for the sharp drop in semiconductor and AI stocks? Did the Democrats issue a ban on super AI? Violators could face 20 years in prison? Semiconductor and AI stocks began to fall on Wednesday after the Democrats won the Senate, and the decline intensified on Thursday. Many people attributed this to the Democrats' restrictions on AI, with some media outlets even reporting a ban on super AI by the US Democrats, with individuals facing 20-year sentences and companies facing immediate dissolution. Let's debunk this first. While the media reports are true, it's just a bill proposed by a member of Congress. It's far from becoming law, and the information is from September 24th, over 40 days ago. Even more shockingly, the bill was proposed by an independent, not a Democrat, who has only long cooperated with the Democrats. Just like Republican Senator Cynthia Lummis introduced a bill hoping the US government would purchase 1 million Bitcoins over five years, this was just a proposal, a long way from becoming law. It has nothing to do with any Democratic proposals; it's pure wishful thinking. In reality, some Democrats do want to limit AI development, worrying about its rapid growth and potential for loss of control. Others are concerned about the massive electricity and water consumption of data centers and their impact on local residents. However, the Democratic Party isn't unified enough to support a halt to AI research. Another group of lawmakers still supports US AI development, hoping to establish safety and regulatory rules alongside research. The recent decline in semiconductor and AI stocks is indeed partly due to regulatory expectations following a Democratic victory. The market fears that a Democratic-controlled Congress will lead to stricter scrutiny of AI companies and data center construction. Election results in key data center states like Texas and Georgia have also raised concerns among investors that project approvals and construction may slow down. But there are other reasons for this decline as well. For example, AI companies need to invest heavily in building data centers. With high interest rates and financing costs, investors are worried about how long it will take to recoup these investments. Rising oil prices are another reason for the decline in AI and semiconductor stocks. The claim that the Democratic Party will ban AI development, at least for now, has not materialized. On another level, AI development is already a pillar industry in the United States. It's not something any single party can simply ban. US tech companies invest heavily in building data centers, purchasing chips and servers, which also drives growth in industries like electricity, construction, and equipment. Research by the Federal Reserve also indicates that investments in data centers, software, and computer equipment have made a significant contribution to US economic growth. At the same time, AI is related to technological competition between the US and other countries. Both the Democratic and Republican parties have members of Congress who support the continued development of AI in the US. Under these circumstances, a complete ban on AI development would face significant political and economic resistance. To put it another way, it's like asking if the US would ban internet development in an era of highly developed internet technology—is that even possible? However, strengthening security reviews of advanced models or restricting data center construction in certain regions is certainly a possibility. One @Gate, more markets for trading.