Kai-Fu Lee, former president of Google China, believes Chinese AI models are currently lagging behind those in the United States but are poised for rapid adoption. Although the Chinese models trail by about six months, Lee predicts that AI applications in China will soon surpass their U.S. counterparts in terms of usage.
At the AVCJ Private Equity Forum, Lee discussed the current state of Chinese artificial intelligence. He explained that while the technology remains about 15 months behind the U.S. in some areas, particularly large language models (LLMs), the gap is closing fast. “Leading LLMs in China are six to nine months behind,” Lee said, referencing a report from CNBC on Sept. 11. However, he also emphasized that recent advancements have dramatically lowered the cost of training AI models in China.
Lee, who also founded the startup 01.AI and venture capital firm Sinovation Ventures, expressed confidence that China will outpace the U.S. in AI app proliferation. “By early next year, I predict apps will proliferate in China much faster than in the US,” he noted. However, he questioned whether small or large firms would dominate this market shift.
Looking ahead, Lee believes it may take five to eight years for consumer-ready generative AI to evolve into a “super app” capable of performing diverse tasks. Such advancements will require new technology, as current smartphones lack the capacity to handle the growing demands of AI. Lee concluded, “The right device ought to be always on, always listening.”