[News] China Just 3-6 Months Behind US in AI Models, Warns Trump’s AI Czar

According to a report from Reuters, David Sacks, the Trump administration’s AI and crypto czar, argues that China is not years behind the U.S. in AI development; instead, the gap may be as short as three to six months. The White House later clarified that he was referring specifically to China’s AI models, noting that Chinese AI chips remain one to two years behind their U.S. counterparts, Reuters adds.

Calling it a very close race, Sacks urges the administration to reconsider whether overly strict AI regulations in the U.S. could stifle innovation and risk ceding leadership in this critical sector to China, as noted by Reuters.

Is Trump’s AI Strategy Focused on Expanding Global Market Reach?

Sacks also criticizes Biden’s AI regulations, arguing that fears of chip smuggling are overstated. He notes that the AI hardware involved consists of massive server racks—around eight feet tall and weighing two tons—which are not easily moved and can be readily tracked, as cited by Reuters.

Reuters suggests that Sacks’ comments might point to a broader Trump strategy focused on expanding overseas markets for U.S. AI chips and models. As the report notes, Trump has already revoked Biden’s “AI diffusion” rule, which had limited how much American AI computing power certain countries could acquire.

In addition, the Trump administration and the United Arab Emirates announced plans last month to build the world’s largest AI campus outside the U.S., following 2023 Biden-era rules that had restricted most AI chip exports to the region, as mentioned by Reuters.

Meanwhile, Sacks previously also commented on Malaysia’s plan to develop a Huawei-powered AI system, according to Bloomberg. He argued that the Trump administration’s rollback of Biden-era chip export restrictions came “just in time,” suggesting those rules risked driving countries like Malaysia toward Chinese AI technology. Bloomberg notes that Malaysia has since distanced itself from the announcement of building AI system powered by Huawei GPUs, and it remains unclear whether the project will move forward.

By contrast, Sacks considers the restriction on selling EUV lithography equipment to China the most critical export control, according to another Reuters report.

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(Photo credit: The White House)