China closes the gap in AI race with US

retained text

A new Bloomberg analysis quantified the US’ narrowing lead over China in the AI race, showing how Chinese companies are deploying advanced models at a faster pace.
The top American AI systems still exceed the capabilities of their Chinese counterparts, according to benchmark testing, but Chinese labs are increasingly winning out globally thanks to their lower price point. “The cost aspect alone demands attention,” a US sports merchandising executive said this week.
Chinese startups and tech giants are spending billions to keep up. But Baidu’s AI bet is sputtering, and Alibaba’s earnings fell last quarter, the company said Thursday, as it invested heavily in AI in a bid to retain its lead.

document fetched 2026-08-21 06:37 · canonical https://semafor.com/article/08/20/2026/china-closes-the-gap-in-ai-race-with-us