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Chinese AI firms scale aggressively to compete with US

Jun 25, 2026, 6:26pm EDT
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DeepSeek on office directory
Florence Lo/Reuters

China’s AI companies are aggressively scaling to compete with the US, but researchers warn the fierce rivalry could come at a cost.

DeepSeek hopes to at least double the size of all its departments to become a “driving force” in developing artificial general intelligence — AI that exceeds human capabilities. Zhipu plans to use its domestic listing proceeds to fund its own AGI quest, after the startup’s latest model closed the gap with top US models.

Chinese companies are capturing a growing share of the AI market, with more users tapping their open-source models. But competition without cooperation carries cybersecurity risks that could be catastrophic for both superpowers, experts told Wired. “AI doesn’t need a Chernobyl moment,” an MIT scientist said.

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