China Grapples With Scaling Advanced AI Models Amid Chip Shortages

What Happened

Major Chinese tech players like Baidu and Alibaba have created state-of-the-art AI models that rival their Western counterparts in benchmarks and performance. However, scaling these AI systems for widespread use remains a challenge, as China contends with US-led export controls, chip shortages, and a stricter domestic regulatory environment. The lack of access to top-tier Nvidia semiconductors further hampers their ability to deploy and operate generative AI at a pace similar to leading American tech firms. As a result, innovation momentum risks slowing as infrastructure bottlenecks persist.

Why It Matters

China\’s struggle to operationalize advanced AI models highlights the crucial role hardware access and global tech policy play in AI competitiveness. These hurdles could shift the global balance in artificial intelligence innovation and affect the broader ecosystem. Read more in our AI News Hub