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Its investment lags far behind America’s. Its models do not
Nvidia's $500bn data centre deal and Alphabet's $205bn AI capex trigger investor doubts on ROI; valuations slide. China's superior capex efficiency shifts the calculus: U.S. tech must now justify mega-spend on model advancement, not just scale.
Catch up on global daily news
Compelling long reads
Tune into captivating conversations
Watch engaging short films
Behind the scenes at The Economist

A new model has narrowed the gap with America

Demand for open-weight models is soaring

A new model is forcing a reassessment

Building world-class software was the easy part

Its advantages are not quite what they seem. Its disadvantages are profound

State-backed efforts to catch up with frontier models are doomed