I'm curious why you'd think that. China as a country has many people to start. Some percentage of these people will end up in AI. Assuming people from all countries are roughly equally intelligent, the numbers clearly favor China. Universities over there are quite good, there's a pretty strong "work hard" mentality I see from all our Chinese students. Plenty of Chinese graduating or starting university these days during the AI hype peak. China as a country isn't sleeping on AI either. I think China as an AI hub looks quite promising. Anecdotally, China also retains quite a lot of talent or people go abroad to study and return to China. Compared to some European countries or India that "leak" a lot of talent to the U.S. I think China is quite a bit more stable.

On the hardware side, things tend to be produced there as well.