Eric Schmidt says China trails US by 6 months but may win AI race
Eric Schmidt, former CEO of Alphabet, stated on the In Good Company podcast that China lags behind the United States in artificial intelligence by approximately six months. However, he warned that the US is effectively losing because Chinese AI products are often free or significantly cheaper. This pricing strategy allows Chinese models to attract users in developing economies who cannot afford…
Key points
- Eric Schmidt says China trails the US in AI by roughly six months.
- Chinese AI products are often free, making them attractive to developing economies.
- Schmidt credits chip smuggling and distillation for China's AI progress.
Schmidt also dismissed concerns about an AI bubble, citing his personal stake in Anthropic. He noted that Anthropic’s revenue growth exceeded the record set by Google during his tenure, with more than twice the pace. He emphasized that this represents real commercial demand from paying customers. Additionally, he agreed with Howard Yu, a professor at IMD Business School, that the current US lead is perishable. Many users do not require the most advanced models, as illustrated by Tencent’s WeChat agent, which provides practical value with less sophisticated technology. For businesses, cost remains a critical factor when weighing AI spending against hiring.
The story so far
10 episodes →- Eric Schmidt says China trails US by 6 months but may win AI racethis story
Google’s Ex-CEO Says China Trails US by 6 Months in AI Race, but Could Still Win Due to This Strategy: ‘We’re Already Losing’
finance.yahoo.com · 24 October 2026
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