The Current Gap Between US and Chinese AI

Martin Chorzempa - in a Peterson Institute presentation - reports on the current gap between American and Chinese chips. It is substantial.

Chorzempa reports that Chinese chip production is improving but remains far behind US quantity and quality. Deepseek's Liang Wenfeng reportedly said that the chip gap between US and China is currently "fourfold plus two years." What that means is that it takes four Huawei chips to match one Nvidia chip from two years earlier. (These are leaked remarks reported in July of 2026.)

Further, the US AI global revenue is greater than Chinas. In May of 2026, Anthropic reported $47 billion. In July of 2026, Zhipu reported $1 billion and DeepSeek about half that.