US tops AI startup creation, China imposes ideological controls

The United States is the undisputed global leader in AI startups and private-sector investment, according to a report by S&P Global. Between 2013 and 2023, 5,509 AI companies were founded in the US, eclipsing all other countries combined. China, the runner-up, saw 1,446 AI startups during the same period. The United Kingdom, Israel, and Canada followed with 727, 442, and 397 startups, respectively.

Investment in AI also heavily favours the US, with $335.2 billion poured into the sector over the past decade. China’s private-sector investment totalled $103.7 billion, while the UK, Israel, and Canada saw investments of $22.3 billion, $12.8 billion, and $10.6 billion, respectively. The report noted, however, that government investment, particularly in China, is significant and less transparent.

China’s approach to AI is shaped by its government’s ideological demands. The Cyberspace Administration of China (CAC) tests AI models to ensure they align with ‘core socialist values.’ AI companies must monitor content to avoid sensitive topics, including political dissent and references to historical events like the Tiananmen Square massacre.

S&P Global anticipates that private investments in AI startups could reach up to $900 billion globally by 2027, reflecting an annual growth rate of at least 70%. Meanwhile, China’s stringent regulatory environment continues to influence the development and deployment of AI technologies within its borders.