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Chinese AI models are currently lagging behind U.S. counterparts by six to nine months according to Kai-Fu Lee, former president of Google China.
Speaking at the AVCJ Private Equity Forum, Lee emphasized that the gap between China and the U.S. in AI development is narrowing, with China expected to surpass the U.S. in AI adoption soon.
China’s Growing Lead in AI Applications
According to a CNBC report, Lee, who now leads the venture capital firm Sinovation Ventures, pointed out that China’s AI applications could increase faster than those in the U.S. by early next year, fueled by reduced AI model training costs.
Although the U.S. still leads in terms of technological advancements, particularly in large language models (LLMs), Chinese tech giants are heavily investing in AI startups and developing their own models.
Lee noted that companies like Alibaba and Tencent have made significant strides in releasing AI models and integrating them into various business functions.
This includes marketing, cloud computing, and gaming, which are areas where AI applications are expected to have a significant impact.
Lee also predicted that while it may take five to eight years for consumer-ready generative AI apps to reach a “super app” status, China’s pace of development means that the country could soon outpace the U.S. in producing AI-powered applications.
This rapid advancement is especially notable given China’s focus on making AI more accessible and cost-effective, which could lead to a surge in AI-driven innovation.
I won't be surprised if China actually achieves AGI before anyone else.
The massive deployment of LLMs in China has saturated the market, with at least 130 models comprising 40% of the global total. pic.twitter.com/YRGJ0uU6mJ— AshutoshShrivastava (@ai_for_success) July 6, 2024
Moreover, Chinese firms are already playing a major role in AI development.
Alibaba-backed ShengShu Technology has made advancements in its AI-powered text-to-video model, Vidu, which allows for improved consistency in AI-generated content—an important feature for industries like advertising.
Similarly, Tencent’s “Hunyuan” language model has been integrated across key business functions, further positioning Tencent as a leader in AI adoption.
