China is rapidly catching up in the AI race, despite US chip curbs. Chinese AI startups like DeepSeek and Moonshot AI are developing models that rival those of US-based OpenAI. DeepSeek's latest large language model, for instance, has abilities comparable to OpenAI's reasoning model.
However, the US chip curbs are still a significant challenge for Chinese AI developers. The restrictions limit their access to advanced chips, forcing them to find workarounds. Some Chinese companies are using techniques like "mixture of experts" to improve performance without relying on the latest chips.
The US-China chip race is intensifying, with both countries investing heavily in semiconductor development. The US has been aggressive in expanding its chipmaking capabilities, with the government announcing grants of up to $6.4 billion to Samsung to expand its chip production in Texas.
China, on the other hand, is working on a $143 billion support package for its semiconductor industry. Chinese companies like Huawei are also developing their own chip technology, reducing their dependence on foreign suppliers.
The tech war between the US and China is likely to continue, with AI and chip development being key battlegrounds. As the competition heats up, it will be interesting to see how Chinese AI startups and US chipmakers adapt and innovate to stay ahead.
