U.S.-China AI investment race accelerates... U.S. relies on Big Tech, China on state-backed funds

The U.S. and China are escalating AI competition by pouring in large-scale funding while restricting investment linked to the other side.

China is backing AI and semiconductor firms with state-led funds and policy financing, while the U.S. is expanding big tech investment and barring certain China-related deals.

As a result, AI startup funding and valuations are rising quickly in both countries.

The twin push of capital and regulation is reshaping tech rivalry, industrial policy, and global AI investment flows.