Global AI Race Tightens as U.S. and China Models Reach Near Parity

Stanford’s latest report highlights narrowing performance gaps, rising enterprise adoption, and the democratization of AI technology.

Chinese AI models have nearly matched U.S. counterparts in performance, with a previous 20-point gap reduced to just 0.3 points by late 2024, according to Stanford’s AI Index Report.
The performance difference between top closed and open-weight AI models has narrowed to 1.7%, driving increased accessibility for smaller organizations and researchers.
Global AI investment surged to $252.3 billion in 2024, with private and governmental funding fueling advancements and widespread enterprise adoption.
AI usage among organizations has risen sharply, with 78% now integrating AI into at least one business function, up from 55% in 2023, as costs for AI inference dropped dramatically.
Industry now dominates AI development, producing nearly 90% of notable models in 2024, with the U.S. leading in output but facing growing competition from China and emerging regions.