Chinese AI labs are far more capital efficient than their American counterparts, and since intelligence scales with effective capital, this efficiency may be the single greatest strength of China's AI industry.

Lambert argues that despite having far less capital than U.S. labs, Chinese companies like Moonshot are matching or beating them on benchmarks, pointing to a decisive efficiency advantage in training. ✦ AI generated

Nathan Lambert · Interconnects · 2026-07-20 · original ↗

It is becoming clear that the Chinese labs are far more capital efficient. In a world where scaling laws dictate that intelligence is proportional to effective capital – which buys compute, data, & talent – that may be the greatest strength your AI industry could ever have.

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