AsianFin -- China’s AI development is rapidly catching up with the United States, with the gap shrinking to just three months in some areas, according to Lee Kai-fu, CEO of Chinese AI startup 01.AI.

Lee attributed this progress to firms like DeepSeek, which have optimized chip utilization and algorithm efficiency, allowing China to advance despite hardware constraints. His remarks highlight China’s growing competitiveness in AI, particularly in large language models (LLMs) and computational efficiency strategies.

As US restrictions on high-end AI chips remain in place, Chinese companies are innovating around limitations, focusing on software-driven breakthroughs. Industry experts believe this acceleration could further boost China’s position in global AI research and commercialization.