<div id="readability-page-1"><div><div><p>Former Google CEO <strong>Eric Schmidt</strong> said the U.S. risks losing its edge in artificial intelligence as China rapidly advances in applied AI and open-source technologies.</p><h2><strong>China Leads In Applied AI And Consumer Technologies</strong></h2><p>Schmidt appeared on the All In Podcast on Wednesday with Venture capitalist <strong>Chamath Palihapitiya</strong> and <strong>David Sacks</strong>, discussing the AI race between the United States and China. </p><p>He said he had previously believed both countries were competing on equal footing in AI development, including ambitious AGI projects.</p><p>&#34;They're really doing something more different than I thought,&#34; Schmidt said.</p><p>&#34;They're very focused on taking AI and applying it to everything…consumer apps, robots, and so forth,&#34; Schmidt noted that U.S. restrictions on semiconductor exports and China's limited access to capital have slowed Beijing's pursuit of AGI. </p><p>However, he warned that Chinese companies are excelling in practical applications, drawing parallels to China's success in the electric vehicle sector.</p><h2><strong>China's Open-Source Strategy Threatens Global AI Leadership</strong></h2><p>The discussion also highlighted a major strategic difference in AI development: &#34;China is competing with open weights and open training data. The U.S. is largely focused on closed weights, closed data,&#34; Schmidt said. </p><p>He emphasized the global implications, noting that countries around the world are more likely to adopt Chinese models due to their open-source nature. </p><p>Palihapitiya referenced Meta's open-source AI efforts, suggesting that even U.S. tech giants face challenges in maintaining open AI initiatives. </p><p>Schmidt responded that smaller, more accessible models are being released, allowing AI to proliferate in controlled, Western-aligned ways.</p><h2><strong>China's AI Momentum And US Strategic Challenges</strong></h2><p>Earlier this month, President <strong>Donald Trump</strong> asserted that the U.S had been leading the AI race, crediting tariffs, Qualcomm protection, and America's energy policies while dismissing wind power as costly and harmful. </p><p>He compared the competition to the Cold War and claimed the U.S. was &#34;easily beating China.&#34;</p><p>Last week, Anthropic CEO <strong>Dario Amodei</strong>, backed by <strong>Jeff Bezos</strong>, stressed that safeguarding U.S. chip dominance was critical, warning that selling chips to China was &#34;mortgaging our future.&#34; </p><p>Similarly, White House AI and crypto czar Sacks said restrictive U.S. export policies could hand Huawei and other Chinese firms a decisive advantage, adding that &#34;excessive bureaucratic delays were a gift for Huawei.&#34;</p><p>Together, their comments highlighted deep concern that China's push in open-source AI, energy infrastructure, and semiconductor development could erode America's technological leadership.</p><ul> <li><strong>Cathie Wood Dumps Palantir As Stock Touches Peak Prices, Bails On Soaring Flying-Taxi Maker Archer Aviation</strong></li> </ul><p><em>Photo Courtesy: YAKOBCHUK V on Shutterstock</em></p></div></div></div>

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<p>Former Google CEO Eric Schmidt warned that the U.S. risks losing the AI race to China, which is rapidly advancing in applied AI and open-source technologies. He noted that while U.S. restrictions on semiconductor exports have slowed China's AGI ambitions, Chinese companies excel in practical applications. Schmidt highlighted a strategic difference: China uses open weights and training data, making its models more globally adoptable. Concerns were raised about U.S. export policies potentially benefiting Chinese firms, threatening America's technological leadership.</p>

- Former Google CEO Eric Schmidt warned that the U.S. risks losing its edge in artificial intelligence as China advances in applied AI and open-source technologies.  
- He noted that while U.S. restrictions on semiconductor exports have slowed China's pursuit of AGI, Chinese companies excel in practical applications, leveraging open-source strategies that may attract global adoption.  
- The discussion highlighted concerns that China's momentum in AI, energy infrastructure, and semiconductor development could undermine America's technological leadership.  

US Could Lose AI Race To China, Warns Ex-Google CEO Eric Schmidt: 'They're...Applying It To Everything'