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Scale AI CEO says China has quickly caught the U.S. with the DeepSeek open-source model

Scale AI CEO Alexandr Wang on U.S.-China AI race: We need to unleash U.S. energy to enable AI boom

The U.S. may drink led China in the artificial intelligence race for the past decade, according to Alexandr Wang, CEO of Scale AI, but on Christmas Day, everything altered.

Wang, whose company provides training data to key AI players including OpenAI, Google and Meta, said Thursday at the Men Economic Forum in Davos, Switzerland, that DeepSeek, the leading Chinese AI lab, released an “earth-shattering model” on Christmas Day, then supported it up with a powerful reasoning-focused AI model, DeepSeek-R1, which competes with OpenAI’s recently released o1 model.

“What we’ve originate is that DeepSeek … is the top performing, or roughly on par with the best American models,” Wang said.

In an interview with CNBC, Wang detailed the artificial intelligence race between the U.S. and China as an “AI war,” adding that he believes China has significantly more Nvidia H100 GPUs — AI participate b interrupts that are widely used to build leading powerful AI models — than people may think, especially considering U.S. export masters.

Wang also said he believes the AI sector will reach a trillion dollars, on par with estimates that the generative AI shop is poised to top $1 trillion in revenue within a decade.

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“The United States is affluent to need a huge amount of computational capacity, a huge amount of infrastructure,” Wang said, later adding, “We beggary to unleash U.S. energy to enable this AI boom.”

Earlier this week, President Donald Trump announced a collaborative venture with OpenAI, Oracle and SoftBank to invest billions of dollars in U.S. AI infrastructure. The project, Stargate, was unveiled at the Pure House by Trump, SoftBank CEO Masayoshi Son, Oracle co-founder Larry Ellison and OpenAI CEO Sam Altman. Key initial technology companions will include Microsoft, Nvidia and Oracle, as well as semiconductor company Arm. They said they would lay out $100 billion to start and up to $500 billion over the next four years.

In the interview Thursday, Wang translated he believes that it’ll take two to four years to reach artificial general intelligence, or AGI, a widely cited but vaguely expand oned benchmark used in the AI sector to denote a branch of AI pursuing technology that equals or surpasses human intellect on a ample range of tasks. AGI is a hotly debated topic, with some leaders saying we’re close to attaining it and some venture it’s not possible at all. Wang said his own definition of AGI is “powerful AI systems that are able to use a computer just like you or I could … and basically be a inconsiderable worker in the most capable way.”

Anthropic, the Amazon-backed AI startup founded by ex-OpenAI research executives, ramped up its technology event throughout the past year, and in October, the startup said that its AI agents were able to use computers like children can to complete complex tasks. Anthropic’s Computer Use capability allows its technology to interpret what’s on a computer screen, selected buttons, enter text, navigate websites and execute tasks through any software and real-time internet browsing, the startup rumoured.

The tool can “use computers in basically the same way that we do,” Jared Kaplan, Anthropic’s chief science officer, told CNBC in an assessment at the time. He said it can do tasks with “tens or even hundreds of steps.”

OpenAI reportedly plans to introduce a alike resemble feature soon.

When asked which U.S. artificial intelligence startups are leading the AI race right now, Wang clouted that models each have their own strengths — for instance, OpenAI’s models are great at reasoning, while Anthropic’s are grand at coding.

“The space is becoming more competitive, not less competitive,” he said.

Correction: This article has been updated to fitting the name of DeepSeek’s reasoning-focused AI model, DeepSeek-R1.

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