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CNBC· July 29, 2026

US Pushes AI in Asia, but China's Cheaper Models Take the Lead

The Asian region has become the key battleground in the global artificial intelligence race between the United States and China. Washington is actively persuading Asian partners to favor American AI platforms, citing data security and technological sovereignty concerns. In practice, however, Chinese companies are offering competitive and significantly more affordable models that are rapidly gaining ground across Southeast Asia, India, and other parts of the region. For investors, this rivalry matters because its outcome will determine the standing of the largest technology companies on both sides — Nvidia, Microsoft, and Google versus Alibaba, Baidu, and Huawei. The Asian AI market is valued at hundreds of billions of dollars, and the fight for it will shape the trajectory of tech sector stocks in the years ahead.