Sam Altman Calls China’s AI Rise ‘Remarkable’ as Global Tech Race Heats Up
Speaking to CNBC, Sam Altman said the progress of Chinese technology companies across the tech stack is “remarkable.”
Altman noted that advances in “many fields,” including AI, are moving at an “amazingly fast” pace. In some areas, he said, Chinese companies are “near the frontier,” while in others they still trail US rivals. His comments come as the United States and China push to lead in artificial general intelligence (AGI).
China has been ramping up efforts to build its own semiconductor industry, aiming to scale up domestic chipmakers that could one day rival companies like Nvidia. At the same time, Chinese AI firms have seen strong investor interest as markets bet on their long-term potential.
Altman is not alone in flagging the competition. Brad Smith, president of Microsoft, told CNBC that American tech companies should “worry a little bit” about the subsidies Chinese competitors receive from their government in the AI race.
While acknowledging China’s rapid rise, Altman made clear that OpenAI is focused on scaling its own business.
According to Dealroom data cited by CNBC, investors have put around $70 billion into OpenAI so far. The company is also working to close a $100 billion fundraising round, sources told CNBC. Altman stressed that growth remains the priority.
“We are growing at an extremely fast rate right now,” he told CNBC. “I think as long as we can have reasonable unit economics, we should focus on continuing to grow faster and faster, and we’ll get profitable when we think we when we think it makes sense.”
OpenAI isn’t just fighting for users; it’s fighting for its margins. The rise of Chinese budget AI has triggered a global price war. According to Benzinga, Chinese firm Zhipu AI charges around $3 per month for AI access. OpenAI charges $20 for ChatGPT Plus. On the developer side, DeepSeek’s flagship model runs $0.28 per million input tokens against OpenAI’s $1.75, a 95% gap for comparable performance.
The price war has arrived. And it’s forcing OpenAI to consider something it once ruled out: advertising.
Ads coming to ChatGPT
To build a clearer path to profitability, OpenAI is exploring new revenue streams, including advertising inside ChatGPT.
“I think we still have some work to do to figure out the exact ad format that’s going to work best,” Altman said, noting that plans are still in the early stages.
He added: “The ads that I have personally liked the most in recent years from tech [companies] have been sort of Instagram-style ads where you discover something new that you might really like and otherwise wouldn’t have known about. I think we’ve got a real opportunity to push in that direction with ads in ChatGPT.”
So far, the company has relied mainly on subscriptions, enterprise deals, and developer API usage. Ads would mark a shift toward a more consumer-internet-style business model.
The India factor
New Delhi itself is emerging as a critical piece of the puzzle.
India has positioned itself as a democratic alternative to Beijing, offering a massive talent pool, favorable regulations, and an eagerness to host American tech infrastructure. OpenAI recently announced plans to open data centers in India with the Tata Group, a strategic move given the US-China tensions.
Prime Minister Narendra Modi’s government is aggressively courting US tech giants. And while Altman’s summit appearance was mostly business, one awkward moment captured the tension simmering beneath the surface: when Modi raised arms with assembled AI leaders for a group photo, Altman and Anthropic CEO Dario Amodei, standing side by side, refused to hold hands. The image went viral instantly.
It was a small thing, but it reflected a rivalry that has turned personal.
Early this month, Anthropic ran Super Bowl ads mocking OpenAI’s ad plans. Altman called them “clearly dishonest.”
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