According to S&P Global, the U. S. is the clear leader in AI startup creation and private-sector investment globally over the past decade. In a report released on July 9, S&P stated that the U. S. founded a total of 5, 509 AI companies between 2013 and 2023, surpassing the combined number of AI companies founded in all other countries and nearly four times higher than China, which came in second place with 1, 446 companies. Rounding out the top five are the U. K. with 727 companies, Israel with 442 companies, and Canada with 397 companies. The U. S. also dominated in terms of private-sector investment in AI startups, accumulating a total investment of $335. 2 billion during the same period, according to S&P Global.

This is more than triple the $103. 7 billion invested by China's private sector and significantly higher than the U. K. 's $22. 3 billion, Israel's $12. 8 billion, and Canada's $10. 6 billion. However, S&P cautioned that government involvement plays a significant role in AI investments, pointing out that much of China's AI spending will come from the public sector, which may lack transparency. The report highlighted China's three-year AI development action plan, which includes initiatives to create a skilled domestic AI workforce and attract foreign workers for AI projects. S&P estimated that worldwide private investments in AI startups could reach an impressive $800 billion to $900 billion by 2027, reflecting a compound annual growth rate of at least 70%-74%. While the U. S. boasts a thriving private-sector AI industry, recent reports reveal that the Chinese government is imposing restrictions on AI developers. The Financial Times reported that the Cyberspace Administration of China (CAC), the country's top internet regulator, is testing companies' large language models to ensure they align with "core socialist values. " This rigorous audit process includes monitoring sensitive questions or keywords that could be considered a threat to state power or national unity. Consequently, Chinese chatbots reject queries related to the Tiananmen Square massacre or inquiries about President Xi Jinping. The Financial Times previously highlighted a research center under the CAC that is developing a large language model based on "Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. "