Host Wenchi Yu speaks with Kevin Xu, investor and author of the newsletter, Interconnected, about China’s leading AI labs and the country’s AI trajectory after the DeepSeek moment. From the rise of open‑weight models and a new generation of homegrown PhD‑level AI researchers to working around constraints on advanced chips and grappling with AI‑induced anxiety in Chinese society, Kevin shares insights from his latest visit with top AI developers across China. He also argues that “co‑opetition” will define the future of U.S.–China AI relations.

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Interconnected: https://interconnected.blog/

Readsail: readsail.com

00:00 - Introduction to Chinese AI resilience amid US restrictions
02:08 - Kevin’s recent China trip overview and labs visited
05:09 - Open weight models from Chinese labs surpassing US regressions
06:28 - Impact of Deep Sea moment on global AI attention and open sourcing strategies
08:03 - The importance of the model layer and hardware collaboration in AI progress
09:00 - Young talent and their significant roles in Chinese AI labs
11:06 - How Chinese labs prioritize research despite compute constraints
13:37 - The critical relationship between chip design and AI model development
16:04 - US-China AI ecosystem rivalry and joint development of domestic chips
18:09 - Leading applications: from coding to consumer AI products
20:32 - Energy supply and infrastructure differences shaping AI research environments
23:17 - The strategic importance of open source in China’s global positioning
26:24 - The debate over open source versus closed source for large models
28:42 - Trends towards increasingly closed models driven by profitability
29:13 - The societal perception of AI, job anxiety, and public engagement in China
33:17 - Demographic challenges and AI's role in addressing them
37:11 - Competition versus coopetition: a balanced perspective on US-China AI relations
41:11 - The US-China AI dialogue, safety protocols, and future cooperation prospects
43:14 - The impact of geopolitical events like Meta and Manus deals on AI innovation
44:45 - Talent migration and government policies in AI talent retention and restriction
48:03 - Final insights on the state of US and Chinese AI development and cooperation

Perspectives with Wenchi Yu

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