China has significantly narrowed the United States' lead in artificial intelligence, according to the 2026 AI Index report from Stanford University's Institute for Human-Centered Artificial Intelligence. The report highlights China's growing dominance in AI patents, publications, and robotics deployments, while also showing a shrinking performance gap between the two nations' top AI models.
China Gains Ground
While the US still leads in the number of top AI models—50 compared to China's 30—China now accounts for 20.6% of global AI citations, surpassing America's 12.6%. Additionally, China has nearly nine times more industrial robot installations than the US, with over 295,000 deployments in 2024.
‘For years, the U.S. outpaced all other global regions on AI... But China emerged as an AI counterweight to the U.S., gradually gaining ground.’
Infrastructure Concerns
The report raises concerns about America's ability to sustain AI growth due to crumbling energy infrastructure. Meanwhile, China has dramatically expanded its power generation capacity, creating a strong foundation for AI compute growth.
Brain Drain Warning
The flow of foreign AI experts to the US has sharply declined, dropping 89% since 2017. Economists warn this trend could further erode America's competitive edge in the global AI race, particularly against China.
Despite these challenges, American private investment in AI remains robust, reaching $285.9 billion in 2025—over 23 times China's AI investment. The US also leads in new AI startups, with 1,953 companies launched last year.