#china-ai-strategy

#china-ai-strategy

China's approach to AI is architecturally different. Where Western tech companies have largely pursued AI as a product category - chatbots, copilots, and standalone tools that can be sold to enterprises - China has treated AI as infrastructure: a utility layer woven into the fabric of commerce, logistics, government services, and daily life.

Open source - that might be the clearest signal of how China wants artificial intelligence to reshape its economy. Hisham Alrayes, the group CEO of Bahrain-based GFH Financial Group, said China is prioritizing open models and broad deployment to spread AI's gains across the economy, instead of funneling them to a few tech giants. Speaking at a Davos panel on China's "AI+ Economy" strategy on Wednesday, Alrayes said the country's approach reflects a fundamentally different economic philosophy.

But they are wrong. These arguments assume that China cannot succeed in AI without access to these advanced AI chips, which is not the case. Advanced AI chips simply reduce the cost of AI. Today's state-of-the-art AI models require a large number of AI chips to build and run. An advanced chip has higher performance; therefore, fewer are needed to achieve the same AI performance.