China narrows gap in race to find top A.I. startups, winners

UP, THIS TIME IN THE VENTURE CAPITAL DEAL-MAKING SPACE, AND THAT IS THE FOCUS OF TODAY'S TECH CHECK WITH DEIRDRE BOSA >> NEW RESTRICTIONS ON CHIP EXPORTS. THAT IS ONE PIECE OF THIS BROADER AI ARMS RACE BETWEEN THE TWO COUNTRIES. WE HAVE OUR EARLY WINNERS, BIG PLAYERS, GOOGLE, CHINA HAS THEIRS, BAIDU, ALIBABA, OTHERS ARE CERTAINLY EMERGING, BUT AS WE HAVE TALKED ABOUT BEFORE, IT IS NOT GUARANTEED

THAT BIG TECH WILL ULTIMATELY BE THE WINNERS OF THIS GENERATIVE AI PLATFORM SHIFT. SO, THERE'S ANOTHER RACE GOING ON TO FIND ANOTHER CLASS OF POTENTIAL WINNERS, AT THE EARLIEST STAGES. THE FOUNDERS AND START-UPS THAT COULD PIONEER NEW USE CASES THAT WE HAVEN'T EVEN THOUGHT OF SO FAR, THE U.S. HAS BEEN WAY AHEAD, IN TERMS OF DEAL MAKING TAKE A LOOK AT THIS CHART THAT DRAWS ON

DATA. IT TELLS US THAT CHINA IS CLOSING THE GAP WITH THE U.S. IN TERMS OF THAT AI DEAL-MAKING IN 2020, CHINA WAS DOING LESS THAN 50% OF THE AI DEALS BEING DONE IN THE U.S. THISSIER, WHICH WE'RE ONLY HALF WAY THROUGH, CHINA HAS CLOSED THAT GAP ITS AI DEAL MAKING IS MORE THAN TWO-THIRDS, 70% THAT OF U.S./AI DEAL MAKING. IN TERMS OF DOLLARS INVESTED, WE ARE

STILL FAR AHEAD OF CHINA BY SOME $20, BUT THE LAST PLATFORM SHIFT, MOBILE, REMEMBER THAT, SAW A SLEW OF CHINESE PLAYERS STORM ON TO THE SCENE AND GENERALLY RIVAL OUR BIG TECH COMPANIES. BITE DANCE, PERHAPS THE BEST EXAMPLE OF THIS. THERE ARE OTHERS, THOUGH AND CHINESE BIG TECH, LIKE THEIR AMERICAN PEERS, THEY'RE INVESTING HEAVILY IN THIS SPACE THEMSELVES EARLIER THIS WEEK, BAIDU CLAIMED THAT ITS CHAT

BOT IS BEATING CHATGPT ON SOME KEY MEASURES AND IT HAS SET ASIDE SOME $140 MILLION IN A VENTURE FUND TO INVEST IN OPEN AI START-UPS. THE QUESTION BEING ASKED TODAY, DO ADDITIONAL EXPORT BAND ALTER THE LANDSCAPE? DOES THAT SLOW DOWN THE PACE OF CHINESE AI DEAL MAKING, BUT IT WILL HAVE TO HAPPEN QUICKLY. BECAUSE THAT CHART THAT I SHOWED YOU THAT UNDERLINES THE STAKES RIGHT THERE,

WHAT IS HAPPENING AT THE EARLIEST LEVELS AND AS WE SAW, WITH OPEN AI, YOU CAN SEE THESE COMPANIES COME UP AND BECOME VERY POWERFUL I