Humanity has yet to create an AI. LLMs are not AI.
What you witnessed was an old man with a known and well documented case of dementia lashing out at people who wouldn't help him continue his attempt on strangling America to death under authoritarianism.
As soon as the bomb of the Trinity test was detonated, the whole world entered the nuclear age, from that moment, irreversible. Quite a scale of an event to compare to.
And I'm generally bearish on Chinese models catching up at this point, American labs are pulling away especially with mythos-tier models, and early signs of RSI (not to mention the benchmaxxing going on from the chinese labs). If mythos allows users to execute agentic cybersecurity exploits at scale then the right thing to do is to guard access until you find a way to guardrail against it, which may be impossible
AI if anything is opposite. Extremely high bar to build, and every next increment requires at best linear scale of resources.
If we imagine that AI became semi-nationalized and heavy regulated, then we enter the world where governments select companies and people to have access to capabilities which vast outlast capabilities available on the market. Company A is in “access list” and can deploy ruthless AI agent capable of advanced combined cyber operations; company B is denied. Who will win?
If we add here polarization and already historic high inequality, it reads like a straight recipe from Cyberpunk sci-fi.
But no, you're talking about LLMs like we've suddenly made AGI happen. LLMs are still just cogs in the toolchain. Every cog has it's purpose. LLMs are no different.
According to who? China loves picking up the slack that America drops. When America turns it's nose up at slave labor, China exports Xinjiang cotton. When Americans get iffy about manufacturing chemicals and refining rare earths, China does the dirty work at-cost. When Russians need weapons, China crosses the sanctions to deliver them.
My nearest estimation is that China will make some kind of announcement declaring no intention to limit AI exports. A lot of their leverage stems from undermining American control of AI research, which they can continue to escalate by offering no/low guidelines models to foreign customers. America's stance on this is overly politicized, which is a prime opportunity for China to look like the adult in the room (and get paid in the process).
My recommendation for them would be next time to create a profitable start-up or one that is valued at less than $1T.