According to Stanford’s 2026 AI Index Report, the performance gap between leading American and Chinese AI models has sharply narrowed to just 2.7%, a significant drop from 17.5-31.6 percentage points in May 2023. This improvement comes even though the US invests 23 times more in private AI funding ($285.9 billion compared to $12.4 billion). Additionally, China dominates the AI patent landscape, holding nearly 70% of global patents.
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