Late to the game, China is seeking to catch the lead of OpenAI in a wider U.S. AI market shaped by tech titans Microsoft, Google and Amazon, and well-financed startups including Anthropic.
"Not too many companies can support their own large language model. It takes a lot of capital. Silicon Valley is definitely well ahead of the game," said Jenny Xiao, a partner at AI VC firm Leonis Capital in San Francisco. "Many of the China models are effectively forks of Llama, and the consensus is that these forks are one to two years behind the leading U.S companies OpenAI and its video-to-text model Sora," Ma said.by think tank Marco Polo, run by the Paulson Institute, shows that the U.S. is home to 60% of top AI institutions, and the U.S. remains by far the leading destination for elite AI talent at 57% of the total, compared with China at 12%. But the research finds that China leads the U.S.
While China has accelerated development of its homegrown chip industry and advanced AI, its AI development has been limited in part by U.S. restrictions on exporting high-end AI chips, a market cornered by Nvidia, as part of a China is getting ahead in applying AI to certain categories, such as computer vision. "The chip shortage is very important for training foundational models where you need certain chips, but for applications, you don't need that," Ma said.
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