US risks losing AI lead to China, says former Trump adviser

A former Trump official has warned that China is only months behind the United States in artificial intelligence, urging policymakers not to stifle domestic innovation through excessive regulation, Reuters reported. 

David Sacks, who now advises the White House on AI and crypto policy, told the AWS Summit in Washington on Tuesday that the technology race is tighter than many in the West believe.

“China is not years and years behind us in AI. Maybe they’re 3–6 months,” he said. “It’s a very close race.”

His remarks reflect growing anxiety in Washington that while the US leads in cutting-edge AI models, China is rapidly catching up, particularly through government-backed investment and industrial policy. 

The Biden administration and Congress have sought to slow China’s progress through export controls and investment restrictions.

However, Sacks cautioned that internal US regulatory burdens could backfire, hindering innovation at home while Beijing accelerates its efforts abroad.