The US has long been the world’s undisputed leader in AI. Now, that lead looks under threat. Cutting-edge Chinese models such as Kimi K3 are proving almost as capable as leading American models; meanwhile, companies in the US and Europe are turning to cheap, efficient Chinese software from companies including DeepSeek and Z.ai in an attempt to curb high usage costs. As China takes strides – and Beijing considers export controls on its AI models – Soumaya speaks to Kyle Chan, fellow at the Brookings Institution's John L Thornton China Center, to find out more.

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Further reading:

Chinese AI start-up Moonshot launches model challenging Anthropic’s lead

Companies turn to Chinese AI models to cut costs

China weighs tighter export controls on AI models and chips

Presented by Soumaya Keynes. Produced by Mischa Frankl-Duval. Original music and sound design by Breen Turner. Edwin Lane is the senior producer. Flo Phillips is the FT’s head of audio.

Read a transcript of this episode on FT.com

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Is China catching up with the US in AI? With Kyle Chan

The Economics Show

Is China catching up with the US in AI? With Kyle Chan