The world’s top artificial intelligence expert has stated China is rapidly closing the technology gap with the United States to as low as three months in several top fields.
Lee Kai-fu, a former Google China executive and CEO of Chinese AI firm 01.AI, shared paradigm-shifting information about China’s AI advancements in an interview. According to Lee, such companies as China’s DeepSeek are going in new directions beyond China’s past constraint.
AI Innovation Defies Expectations
DeepSeek’s recent release of an AI reasoning model shook the global tech world. The startup proved that it is possible to create advanced AI technology with less advanced chips and at lower expense than Western rivals.
This feat directly refutes the claim that US semiconductor sanctions have been a main obstacle to China’s AI advancement.
“In the past, China was six to nine months behind in everything,” Lee said. “But now we are probably only three months behind in key technologies, and in a few specific areas, we might even be ahead.” The stunning transformation was a tribute to the strength and nimbleness of Chinese tech companies.

Washington’s semiconductor sanctions have been a “double-edged sword,” Lee says. Initially challenging, the sanctions have surprisingly compelled Chinese firms to innovate despite modest constraints.
Firms such as DeepSeek have reacted by creating more effective algorithms and innovative workarounds to technological constraints.
One of the best features is how DeepSeek alters AI reasoning. The company has developed a system that provides line-by-line explanations of the reasoning behind responses—a feature OpenAI first introduced but never launched for consumers. The innovation is a case of China’s ability not only to catch up but also to surpass existing technologies.
China’s Generative AI Surge: A Multipolar Future
China’s technology industry soon followed the generative AI path after the OpenAI ChatGPT release in late 2022. Although everyone had presumed that Chinese businesses were way behind Western businesses at the beginning, things have completely changed since then.
Lee, the founder of 01. AI in March 2023, is among a growing Chinese AI startup community. Along with companies like ZhipuAI and Moonshot, and tech giants like Baidu, Alibaba, and ByteDance, these institutions are actively developing foundational AI models.
Appreciating the harsh market situation in the hands of well-capitalized tech giants and fast-changing open-source alternatives, 01. AI has adopted an unconventional approach.
Rather than developing proprietary models as the sole thrust, the organization is focusing on real-world applications of AI and software solutions for enabling clients to deploy foundation models effectively.
This month, 01. AI launched Wanzhi, an application platform that allows companies to implement AI technology. Already, the company has begun generating revenue and anticipates tremendous growth in 2025, potentially doubling its $15 million revenue last year.
Lee’s report suggests that the international environment for AI will become multipolar. China’s progress suggests that the future of artificial intelligence will be driven by innovation, adaptability, and strategic thinking, rather than any one nation.