Seafarer®

Pursuing Lasting Progress in Emerging Markets®

Market Currents

China vs. U.S. Spending on Artificial Intelligence

– Financial and technological constraints have forced Chinese AI companies to focus on efficiency, cost, and practical applications. Chinese firms are betting that the returns to AI will come from near-term monetization and real-world use cases rather than the costly pursuit of frontier model breakthroughs, suggesting a different risk-reward profile than U.S. hyperscalers.

Speaker

Related Information

Compared to their U.S. hyperscaler competitors, Chinese tech companies are spending far less on AI and the gap between the U.S. and China is growing. Despite the spending gap, Chinese companies are still very much in the global AI race.
The views and information discussed in this video are as of the date of publication, are subject to change, and may not reflect Seafarer’s current views. The views expressed represent an assessment of market conditions at a specific point in time, are opinions only and should not be relied upon as investment advice regarding a particular investment or markets in general. Such information does not constitute a recommendation to buy or sell specific securities or investment vehicles. It should not be assumed that any investment will be profitable or will equal the performance of the portfolios or any securities or any sectors mentioned herein. The subject matter contained herein has been derived from several sources believed to be reliable and accurate at the time of compilation. Seafarer does not accept any liability for losses either direct or consequential caused by the use of this information.
As of March 31, 2026, securities mentioned in the video comprised the following weights in the Seafarer Overseas Growth and Income Fund: Alibaba Group Holding, Ltd. (1.2%). As of March 31, 2026, the Seafarer Funds did not own shares in the other securities mentioned in this video. View the Seafarer Overseas Growth and Income Fund’s Top 10 Holdings. Holdings are subject to change.
Sources: UBS; Bloomberg; Seafarer.