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Elon Musk said China is “by far” the strongest competitor in artificial intelligence, extending a warning he made 15 years ago that Beijing would ultimately become Space Exploration Technologies Corp.’s most important rival in rocket technology. <\/p>\n
Musk’s 2011 China Prediction Resurfaces Again <\/p>\n
“China is also by far the strongest competitor in AI,” Musk wrote on X, responding to technology commentator Brian Roemmele, who resurfaced Musk’s 2011 prediction. <\/p>\n
China is also by far the strongest competitor in AI <\/p>\n
\u2014 Elon Musk (@elonmusk) August 19, 2026<\/a> <\/p>\n Don’t Miss: <\/p>\n At the time, Musk wrote, “SpaceX has Boeing, Lockheed, Europe (Ariane) and Russia (Proton\/Soyuz) near checkmate in rocket technology. End game is all about China.” He followed that by arguing existing rocket technology, including SpaceX’s, would remain inadequate until rockets became fully reusable. <\/p>\n China Accelerates Its Reusable Rocket Push <\/p>\n That prediction has gained fresh relevance. Chinese private rocket company LandSpace successfully landed the first stage of its Zhuque-3 orbital rocket on Wednesday, becoming China’s first private launcher to achieve a ground-based, leg-assisted orbital-booster recovery. The milestone followed China’s first orbital-stage recovery in July, when a Long March 10B booster was captured at sea, a development that previously moved China closer to SpaceX in reusable launch technology. <\/p>\n SpaceX has long dominated reusable orbital launches, while Chinese companies are accelerating development of lower-cost systems. Musk has previously acknowledged Zhuque-3’s potential as a Falcon 9 rival, amid predictions that Chinese launch companies could challenge SpaceX by 2030. <\/p>\n Trending: Avoid the #1 Investing Mistake: How Your ‘Safe’ Holdings Could Be Costing You Big Time<\/a> <\/p>\n China Has Nearly Erased America’s AI Lead <\/p>\n Musk’s latest comments shift the rivalry toward AI, where evidence also points to a rapidly narrowing gap. Stanford University’s 2026 AI Index said the U.S.-China model-performance gap has “effectively closed.” U.S. and Chinese systems have traded the lead since early 2025, while Anthropic’s top model led China’s best by only 2.7% as of March. <\/p>\n The U.S. still produced 59 notable AI models in 2025 compared with China’s 35 and attracted $285.9 billion in private AI investment versus China’s $12.4 billion. However, China leads in AI publication volume, citations and patent grants. <\/p>\n Story Continues <\/p>\n Chinese startup DeepSeek has intensified that competition despite U.S. chip restrictions and is now developing its own inference chip. Earlier concerns over China’s progress prompted warnings that America could face a “serious disadvantage” in the AI race. <\/p>\n Photo Courtesy: Frederic Legrand \u2013 COMEO on Shutterstock.com <\/p>\n Read Next:\u00a0 <\/p>\n Building Wealth Across More Than Just the Market <\/p>\n Building a resilient portfolio means thinking beyond a single asset or market trend. Economic cycles shift, sectors rise and fall, and no one investment performs well in every environment. That’s why many investors look to diversify with platforms that provide access to real estate, fixed-income opportunities, precious metals, and even self-directed retirement accounts. By spreading exposure across multiple asset classes, it becomes easier to manage risk, capture steady returns, and create long-term wealth that isn’t tied to the fortunes of just one company or industry. <\/p>\n Arrived <\/p>\n Backed by Jeff Bezos, Arrived Homes makes real estate investing accessible with a low barrier to entry. 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For accredited investors, FarmTogether offers direct access to high-quality U.S. farmland starting at $15,000<\/a> \u2014 fully managed, with no landlord headaches. <\/p>\n Fundrise <\/p>\n Private real estate and private credit can add income and stability to a stock-heavy portfolio. Fundrise offers access to diversified private real estate<\/a> and credit strategies through an easy-to-use platform, with professionally managed portfolios designed to generate passive income and long-term growth. <\/p>\n Qnetic <\/p>\n As electricity demand rises alongside AI, data centers, and renewable energy, long-duration energy storage is becoming increasingly important. Qnetic is developing a kinetic energy storage system designed to provide long-lasting, chemical-free electricity storage<\/a>, <\/a>offering investors exposure to the infrastructure supporting a more resilient and reliable power grid. <\/p>\n EquityMultiple\u00a0 <\/p>\n For accredited investors looking beyond stocks and bonds, EquityMultiple provides access to vetted commercial real estate deals starting at $5,000<\/a>,<\/a> with only ~5% of opportunities passing their due diligence process.\u00a0 <\/p>\n BluSky AI <\/p>\n