China’s AI Race: 6-9 Months Behind U.S but Closing the Gap Fast

TLDR:

• Chinese AI models lag behind U.S. counterparts by 6-9 months
• AI apps expected to proliferate faster in China than in U.S. by early next year
• Cost of training good AI models has decreased significantly
• Major Chinese companies like Alibaba and Tencent have released AI models and products
• Development of “super app” AI capabilities may take 5-8 years

China’s artificial intelligence (AI) sector is making swift strides, despite currently lagging behind its U.S. counterparts. According to Kai-Fu Lee, former head of Google China and founder of startup 01.AI, Chinese AI models are approximately 6 to 9 months behind those developed in the United States.

However, Lee predicts that AI applications in China will likely see faster adoption and proliferation compared to the U.S. in the near future.

The AI Landscape in China

The development of large language models (LLMs) in China has been progressing rapidly. While top Chinese companies’ LLMs are about half a year to nine months behind their U.S. counterparts, less advanced Chinese models may lag by around 15 months.

Despite this gap, Lee anticipates that AI apps will “proliferate in China much faster than in the U.S.” by early next year.

This accelerated growth is partly attributed to the significant reduction in the cost of training good AI models. Major Chinese tech giants like Alibaba and Tencent have already released their AI models and business products, with many also backing various AI startups.

While China is making rapid progress in AI development, there are still challenges to overcome. Lee suggests that it may take between five to eight years to develop generative AI consumer applications to the level of a “super app” – a single application capable of performing multiple tasks.

The industry may also require new devices beyond existing smartphones to fully harness AI capabilities. Lee envisions future AI devices that are “always on, always listening,” indicating a potential shift in how we interact with AI in our daily lives.

Chinese Companies Leading the Charge

Chinese tech giants are not sitting idle in the AI race. Alibaba and Tencent have released their own AI models and are actively investing in AI startups.

For instance, Beijing-based ShengShu Technology, backed by Alibaba affiliate Ant Group, recently announced advancements in its text-to-video model, Vidu.

This model now offers improved consistency in portraying main elements or characters in AI-generated clips, a feature particularly useful for advertisers creating promotional videos.

Tencent has also entered the AI arena with its large language model called “Hunyuan,” which was unveiled in September last year.

This model has since been integrated across various divisions of the company, including cloud computing, marketing, and gaming.