China's pursuit of AI dominance through state funding and open-source strategy
China's making big moves in artificial intelligence, quickly closing the gap with the US.
After OpenAI limited access to its tools last year, Chinese developers didn't miss a beat—they switched to homegrown, open-source models from companies like DeepSeek and Huawei.
In just a year, these alternatives have become serious global contenders, showing how quickly China can adapt.
China is now leaning on local chipmakers
A huge reason for this leap? The Chinese government has spent years investing in data centers, hardware, and startups—$8.5 billion so far.
With US tech restrictions in place, China is now leaning on local chipmakers like SMIC to boost Huawei's capabilities.
Plus, by focusing on open-source AI (unlike many US firms), China's making its tech more flexible and appealing worldwide—helping it build influence even as tensions rise.