China is rapidly closing the AI gap with the US, backed by state funding, open-source models, and massive infrastructure, according to Bloomberg. In response, the US is ramping up data center construction, AI investment, and deregulation. Both countries see AI as vital to global power and national security, fueling a high-stakes tech race. They write:
Itโs been almost three years since the US kicked off the artificial intelligence boom, and most of the world is still struggling to catch up. Only one country is close to matching the US in AI development: China.
Chinese firms such as DeepSeek,ย Alibaba Group Holding Ltd.ย and Moonshot have released AI models that approach the capabilities of leading systems from US companies, spurred on by a government that has made AI leadership a national priority. To that end, itโs rolling out a package of generous state support and a national network of interlinked data processing hubs.
Chinaโs ascendance has set off alarm bells in Silicon Valley and Washington.ย […]
Whether the US will press ahead with new mandates on chips remains an open question. Trumpโs desire for a deal with China means further curbs on chips are unlikely before the expected summit this fall, according to Chris Miller, professor of international history at Tufts University and author ofย Chip War.
โThe administration has many priorities and itโs hard to see which is going to win out,โ he said. โItโs very clear that the White House is going to try to balance the hawksโ desire for restrictions with the broader US-China relationship.โ
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