If China has one dollar left, "that dollar is going to be spent on AI rather than real estate," said Bruce Liu, CEO of Esoterica Capital.
Currently, private sector AI investment in the U.S. is about 23 times greater than in mainland China, according to Fitch's BMI.
While the financing gap is significant, China has its own cost advantages.
The Big Story
For Beijing, the artificial intelligence race is a story of resolve.
The goal is to be self-sufficient in AI, without relying on the U.S.
Everything from China's national policy to district-level subsidies underscores those ambitions.
So far, China has made strides in advanced chips for powering AI, but they still fall short of Nvidia's.
Nvidia has gathered Wall Street titans to support $500 billion in financing for AI development, demonstrating the U.S. advantage in capital.
Chinese companies have also released AI models with similar capabilities — at lower prices.
However, running the models still requires chips, a capability that Beijing lacks compared to the U.S.
Chasing Returns
The story could change quickly.
Huawei and other Chinese companies along the AI supply chain have narrowed the gap with global rivals in just a few years.
China is also courting AI talent and has low electricity costs.
Clients care far more this year about the entry price for investing in AI.
China released a three-year plan for building infrastructure to support faster computing power.
Need to Know
Beijing is said to move to clarify tax rules.
Manus is set to return as an independent company.
China's C919 made its first international flight.
Tencent sees a surge in spending.
