Alibaba's Joe Tsai says the AI race has no winner — and the US has to learn from China

At the recent All-In Summit 2025, Alibaba's chairman Joe Tsai emphasized that the race for artificial intelligence (AI) is not a contest to create the most powerful models, but rather a challenge of who can implement AI solutions most rapidly. Tsai stated, "There's no such thing as winning the race" in AI, underscoring the concept that the journey is more akin to a marathon than a sprint. Tsai elaborated that the landscape of AI is constantly evolving, with new models frequently emerging as leaders only to be overtaken shortly after. He argued that true success lies in the ability to adopt and deploy these technologies efficiently, rather than merely investing in the creation of larger and more complex AI systems. According to him, the United States should shift its focus from heavy financial investments in model development to fostering faster adoption of AI technologies. Citing China's approach as a notable example, Tsai pointed out that many Chinese companies are leveraging open-source frameworks and smaller, optimized models tailored for practical applications on devices like smartphones and laptops. He remarked that while China may not be winning in the aspects of model complexity, it is excelling in real-world implementation and the benefits that citizens derive from AI advancements. The competitive landscape sees US tech firms heavily investing in AI, with companies like Meta projecting an expenditure of $600 billion on infrastructure by 2028. In contrast, China's strategy revolves around developing leaner, more efficient models that are less costly and easier to deploy. The R1 model from DeepSeek, for example, has gained attention for its competitive capabilities while being developed at a fraction of the price of its counterparts. Experts suggest that the speed of integrating AI into daily technology may be just as significant as the quality of the models themselves when it comes to determining a nation's competitive edge in AI development.