China is having another AI moment
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China | Catching up<br>China is having another AI moment<br>A new model has narrowed the gap with America<br>Share
Photograph: Getty Images
Jun 21st 2026|7 min read
America’s lead over China in artificial intelligence may be at its smallest in over a year. When China disrupted the ai race in January 2025 with the release of DeepSeek r1, it erased $1trn from America’s capital markets. Nvidia, a chip firm, briefly shed 17% of its value; the Nasdaq sank by 3.1% in a day. American investors were troubled not only because Chinese ai was good, but because it was being given away for free. The uproar soon faded. Since then market valuations around the world have hinged ever more on the promise that ai will be both revolutionary and profitable.
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