Overview

• The 2025 AI Index Report shows that Chinese AI models have closed the performance gap with US models, reducing a 20-point lag in 2023 to near parity by late 2024.
• Open-weight AI models, such as DeepSeek and Meta's LLaMa, are gaining prominence, narrowing the performance gap with closed systems to just 1.7% in early 2025.
• Global AI investment hit a record $150.8 billion in 2024, with significant contributions from governments and private sectors worldwide, including emerging players in the Middle East, Latin America, and Southeast Asia.
• Advancements in efficiency have enabled smaller, more cost-effective AI models to achieve performance levels once limited to much larger systems.
• The AI industry is increasingly dominated by private companies, with 90% of notable models in 2024 emerging from industry rather than academia.