“I am shocked” — Former Google CEO, Eric Schmidt.

In spite of brutal American sanctions, China has caught up with or surpassed the US in many areas of AI.

Consider these two examples of Tencent and DeepSeek:

🔹Tencent has released a language model called Hunyuan-Large that outperforms Meta’s most powerful variant of Llama 3.1 in several benchmarks.

🔹DeepSeek has released DeepSeek-v3, which now ranks highest among open-source AI on a popular online leaderboard and holds its own against OpenAI

Chinese companies are using smarter software and algorithms to overcome the lack of cutting-edge Nvidia chips.

Once China manages to make great GPUs and AI chips like Nvidia, it’s game over.