Tag: Start-ups

Europe Hurries to Fund More Cutting-Edge Businesses to Compete With China and U.S.

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The shiny cylindrical tanks and slant-roofed control panels shoved against a wall in C3 Biotech’s laboratory have essentially been turned into a multimillion-dollar graveyard of high-grade stainless steel equipment. All of this state-of-the art gear was discarded during the company’s quest to discover a cheap way to convert agricultural waste like potato peels or sugar beet pulp into acrylic glass, a material widely used in manufacturing. Nigel Scrutton, a co-founder of C3 Biotech in Stockport, England, makes a point of showing off these expensive failures before explaining that the eureka…

This Is How America Trounces China in the A.I. Race

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The Chinese government has spent three years giving away its most capable artificial intelligence to anyone to use. That generosity was always temporary. Chinese authorities have reportedly been meeting with Alibaba, ByteDance and the start-up Z.ai to discuss restricting overseas access to some of China’s most advanced models — including systems that have not yet been released. The U.S. government’s instinct will likely be to answer with a ban of its own. That would be a mistake. The right response is the opposite: America and its allies should build and…

The Quest for ‘Technological Sovereignty’ in Europe (and Why It’s So Hard)

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The French government said this year that it would replace Zoom and other American videoconference software with a French-developed alternative. Germany is building a homegrown platform for artificial intelligence. Companies in both countries are teaming up to build A.I. chips to rival those of the United States and China. These are modest steps in Europe’s high-stakes race to catch up to America and China in the global sprint for digital independence. Without it, Europe’s political and business leaders worry, they will be vulnerable to sudden losses of access to critical…

Chinese A.I. Models Gain Ground on Anthropic and OpenAI

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Two weeks ago, the artificial intelligence company Anthropic shut down its two most powerful A.I. systems after an unexpected demand from the U.S. government to cut access to it. Days later, a Chinese start-up, Z.ai, released an A.I. model that is nearly as powerful as Anthropic’s models, Fable and Mythos. But Z.ai’s new technology costs much less to use, and no one in the United States was putting restrictions on it. It quickly landed on a closely watched leaderboard of the world’s 10 most popular models. Z.ai is on the…

DeepSeek’s Sequel

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Remember the “DeepSeek moment?” The Chinese start-up announced in early 2025 that it had created an artificial intelligence model that could rival ChatGPT. Not only that, it had created it at a fraction of the cost of its American competitors. If China had been considered behind the United States on A.I., DeepSeek changed that. Almost instantly, its model became the most downloaded free app in the U.S. Some in Silicon Valley started calling it “A.I.’s Sputnik moment.” DeepSeek released its latest model last week. Today, my colleague Meaghan Tobin, who…

DeepSeek’s Sequel Set to Extend China’s Reach in Open-Source A.I.

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When the Chinese start-up DeepSeek published details about one of its artificial intelligence models last year, it sent shock waves through the tech industry. The company said it had built its system by spending far less on computer chips than American rivals like OpenAI and Anthropic. It marked the start of what became known as China’s “DeepSeek moment,” shorthand for the belief that Chinese A.I. companies were ready to showcase their technical capabilities to the world. The DeepSeek moment reflected a shift in the global A.I. landscape. The change was…

Taiwan Is Building a Satellite Network Without Elon Musk

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In Taiwan, the government is racing to do what no country or even company has been able to: build an alternative to Starlink, the satellite internet service operated by Elon Musk’s rocket company, SpaceX. Starlink has allowed militaries, power plants and medical workers to maintain crucial online connections when primary infrastructure has failed in emergencies, such as an earthquake in Tonga and Russia’s invasion of Ukraine. Officials in Taiwan face constant reminders that its communication infrastructure must be able to withstand a crisis. The island democracy sits 80 miles from…

Big American Tech Profits From Chinese Ad Spending Spree

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The trade relationship between China and the United States has plenty of friction. But at least one area is booming: Chinese start-ups looking to establish a presence in the West are spending billions of dollars for advertisements on services owned by some of Silicon Valley’s biggest technology companies. Temu, the international arm of the Chinese e-commerce giant Pinduoduo, is flooding Google with ads for absurdly inexpensive goods. With an initial public offering looming, the fast-fashion merchant Shein is inundating Instagram with ads for clothes and accessories at rock-bottom prices. Developers…

China’s Rush to Dominate A.I. Comes With a Twist: It Depends on U.S. Technology

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In November, a year after ChatGPT’s release, a relatively unknown Chinese start-up leaped to the top of a leaderboard that judged the abilities of open-source artificial intelligence systems. The Chinese firm, 01.AI, was only eight months old but had deep-pocketed backers and a $1 billion valuation and was founded by a well-known investor and technologist, Kai-Fu Lee. In interviews, Mr. Lee presented his A.I. system as an alternative to options like Meta’s generative A.I. model, called LLaMA. There was just one twist: Some of the technology in 01.AI’s system came…

Silicon Valley Venture Capitalists Are Breaking Up With China

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DCM Ventures, a Silicon Valley venture capital firm, began investing in China’s start-ups in 1999. The move reaped such blockbuster returns that in 2021, DCM said it planned to “double down” on its strategy of investing in China, the United States and Japan. Yet when DCM set out to raise money last fall for a new fund focused on very young companies and promoted its “cross-Pacific” expertise, the firm described plans to invest in the United States, Japan and South Korea, according to a fund-raising memo that was viewed by…