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  7. US vs China: The AI Race - Who is Leading the Global AI Competition?

US vs China: The AI Race - Who is Leading the Global AI Competition?

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Video by: AI Agent Guy
Discover how China's rapid advancements in AI technology are challenging the US's traditional lead, with tools like DeepSeek R1 and Manus surpassing US models in cost, performance, and innovation. Explore the implications for global AI leadership and the efforts of US leaders like Sam Altman to maintain their position amidst this shifting landscape.
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0:00
China's AI is catching up fast.
0:03
So for the first time, the US might actually lose its lead.
0:07
In just a few weeks, China has dropped next level AI tools like DeepSeek R1, Now, Manus,
0:14
AI, Kling, Vidoo, and more.
0:17
These aren't just alternatives.
0:19
They are surpassing US models in cost, performance, and innovation.
0:24
But this isn't just about technology.
0:26
It's about power, control, and the future of global AI leadership.
0:30
Therefore, the US leaders, including OpenAI's Sam Altman, are pushing to stop the shift.
0:37
But is it already too late?
0:38
Most of us were shocked by the DeepSeek moment just a couple of weeks ago, when the Chinese
0:44
company DeepSeek released their R1 reasoning model, which is on par with OpenAI's R1 model,
0:51
if not better, at a fraction of the cost.
0:54
But that wasn't the only disruption.
0:56
Just in the past couple of days and new
0:59
Chinese company released Manus AI, which some argue is the most advanced AI agent so far.
1:07
For that reason, it marks a shift from reactive assistance to a proactive task fulfillment
1:13
with autonomous AI agents, reducing the need for constant human oversight.
1:20
This efficiency leap could fundamentally change the way we interact with AI, but China isn't
1:26
stopping there.
1:26
Other top AI tools like TreyAI, which is an AI IDE that competes with Cursor and Windsurf for software development.
1:36
And then there's KlingAI Video Generator, positioned as a free tier to Sora, are rapidly emerging.
1:43
As a result, China is not catching up anymore. It's actually redefining AI accessibility.
1:48
Meanwhile, Video AI is advancing video generation by producing high resolution and longer form
1:56
AI generated videos.
1:58
creation. An area where even top western models struggle. And then there's Janus
2:03
Pro, a deep-seeking multi-model rivaling Mid Journey and DAO-E for open AI. Oh
2:10
yeah and by the way it's open source so it's freely available. For that reason
2:14
after testing all these tools one thing is clear the US is definitely in trouble
2:20
but it's not just about the pace of AI development. Although Chinese companies
2:25
in AI get bad press from mainstream media, they operate with a significantly less funding than US
2:32
companies like OpenAI or Anthropic. While OpenAI's Stargate project aims to raise 500 billion,
2:40
DeepSea's trained R1 reasoning model was trained for only 6 million US dollars. Thus, China is
2:47
proving that innovation isn't just about money, it's about efficiency and strategic breakthroughs.
2:54
That's why Sam Altman started lobbying.
2:57
for bans on Chinese AI. Companies like DeepSeek. But restrictions on AI chips
3:03
from Nvidia, which currently has a monopoly on the actual hardware that
3:08
fuels the innovation in AI, have already been in place. So the question isn't
3:13
whether China can access the best hardware. It's how they are succeeding
3:17
despite these restrictions. China turned constraints into innovation. DeepSeek
3:23
openly shared its approach in this white paper, giving the world access to their method on
3:29
how to train large language models in the chain of thought method using reinforcement
3:34
learning. Essentially saying, copy me if you can. That's a bold move. But the US still
3:40
holds critical advantages in fundamental research and AI hardware, like with NVIDIA. While China
3:48
excels in actual applied AI, many core breakthroughs still originate from the US, especially in
3:56
from top US universities like MIT, Stanford or Berkeley, just to name a few.
4:01
Therefore, innovation at the foundational level might still give the US an edge.
4:07
But while China has a larger number of AI engineers that helps them to brute force
4:12
innovation to a certain degree, the US still retains niche expertise.
4:18
Decades of attracting global AI talent have created a highly specialized ecosystem in the US,
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