Is China overtaking in AI?

DeepSeek’s success in developing AI models that rival those of US tech-giants has rattled US markets. While this does suggest that catching up to the technological frontier in AI may be easier than many expected, it is not a sign that China is overtaking the US. Restricted access to cutting-edge chips has constrained Chinese developers to focusing on catching up through efficiency gains, rather than pushing the frontier of innovation. With US export controls set to remain strict, China is likely to remain a follower when it comes to cutting-edge AI.

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