Former Google chief executive Eric Schmidt is warning that China is gaining the upper hand in the artificial intelligence race by developing models that cost less, Quartz reported on Wednesday.
According to Quartz, Schmidt's warning centers on the economics of AI development, with China's cheaper models giving it an advantage in the competition between the two countries.
The remarks add Schmidt to the ongoing debate over which nation is leading in AI. Quartz frames his warning as a direct claim that China is winning the race, with cost as the deciding factor.
Schmidt's view, as reported, contrasts with narratives that focus on which country produces the most capable models. His emphasis is on affordability, suggesting that lower-cost development can shift the competitive balance.
The report did not include further details of Schmidt's remarks or the specific models he was referring to.
Schmidt has remained an active voice on technology policy since leaving Google, and his comments carry weight in discussions about how the United States should approach AI development and competition.
What to watch next: whether US policymakers and AI companies respond to the cost argument Schmidt is raising, and whether cheaper model development becomes a larger theme in the policy debate between Washington and Beijing.