China Lags in AI Race for a National Counterpart to OpenAI

China is actively pursuing advancements in the field of artificial intelligence (AI), aiming to compete with leading US-based companies such as OpenAI. Efforts to bridge the technology gap have included the adoption of open-source large language models (LLMs) like Meta's Llama 1. However, China's progress has been challenged by US export restrictions on advanced semiconductor chips, which are crucial for AI development. In response, Chinese tech companies, including Huawei, are intensifying their efforts to develop domestic chip capabilities.

Despite these challenges, the United States continues to maintain a strong lead in generative AI, bolstered by significant investment and innovation. In 2022, nearly half of the $42.5 billion invested globally in AI startups was allocated to US-based firms. While China has yet to unveil a gen AI platform with the same impact as OpenAI's offerings, Chinese tech giants and startups are leveraging available open-source models to accelerate their progress.

Furthermore, a study by the think tank Marco Polo indicates that China is producing a significant number of top-tier AI researchers, holding potential for future innovation and competition in the AI sector. The study found that China accounts for 47% of top-tier AI researchers, compared to 18% in the US, suggesting that China may possess the talent needed to advance its AI capabilities and compete on a global scale. Despite these developments, the US and China seem to be moving towards establishing two distinct ecosystems for AI development, reflecting the ongoing tensions and technological rivalry between the two nations.