Kai-Fu Lee, former Google Greater China President, renowned venture capitalist, and founder of 01.AI, stated that the gap between China and the U.S. in artificial intelligence (AI) development has narrowed to just three months in certain areas, as companies like DeepSeek identify more efficient ways to utilize chips and algorithms.

In an interview with foreign media, Lee noted that DeepSeek reflects how China has outrun in infrastructure software engineering and other fields.

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Despite multiple rounds of U.S. export technology restrictions on China’s tech sector, which were previously thought to hinder China’s AI progress, DeepSeek has leveraged more mature process chips and developed at a lower cost compared to Western peers, stunning the global AI industry.

Speaking in an interview in Hong Kong, Lee remarked that he once believed China lagged behind the U.S. by 6-9 months across all aspects of AI. However, he now believes the gap in some core technologies has narrowed to just three months, and China has even taken the lead (over the U.S.) in certain specific areas.

Lee described U.S. semiconductor sanctions on China as a "double-edged sword", posing short-term challenges but also forcing Chinese companies to innovate to overcome restrictions. He said that Chinese firms are developing their own algorithms as a result.

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