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China will clinch the AI race

Energy abundance, open-source models and manufacturing strengths will push Beijing into first place

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Welcome back. Next week marks a year since DeepSeek, a Chinese AI start-up, shocked Silicon Valley by unveiling a high-performing large language model at a fraction of the cost borne by US tech giants.

Both Beijing and Washington are racing to be the global leader in AI. The US is ahead on cutting-edge LLMs, underpinned by the country’s vast access to the most advanced AI chips, which are primarily designed by Nvidia.

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