Ray Dalio Says China Is 'Way Ahead' In AI And Robotics: US Lags in Mass Production

Hedge fund manager and billionaire investor Ray Dalio reiterated his stance on China’s dominance in the application and usage of artificial intelligence technology.

What Happened: The founder of Bridgewater Associates, Dalio, while speaking at a CNBC event, Converge Live in Singapore, highlighted how the United States was “uniquely competitive” in inventing, and particularly inventing the best chips in the world.

However, he said that the U.S. was uncompetitive in mass producing them. “China is behind but not by a lot in the best chips,” he said, adding that the Asian country was ahead in producing more chips and having those chips working together in applications.

“They are ahead on the applications, and they are integrating chips with robotics, and way ahead on that,” he said about China.

Furthermore, he acknowledged that application and usage are going to be two big factors of competition in the future.

See Also: Alibaba’s Joseph Tsai Says ‘Everyone Is Concerned About Tariffs,’ As He Expects Levies On Chinese EVs

Why It Matters: This is not the first time that Dalio has said this about China. He had brought up the same points while speaking with David Friedberg on the All-In Podcast in late January.

As the Chinese AI startup DeepSeek garnered attention after ranking as the number one application on Apple Inc. AAPL App Store, Dalio emphasized the competitive landscape.

“I think the Chinese are a bit behind in the chips, but they are ahead in the applications,” he said in the podcast.

Apart from this, Dalio also stressed on the supply-demand problem faced by the U.S. during the interaction. He said that it was necessary to reduce the U.S. deficit to 3% of GDP.

Price Action: The SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust ETF QQQ, which track the S&P 500 index and Nasdaq 100 index, respectively, rose in premarket on Wednesday. The SPY was up 0.81% to $560.42, and the QQQ also advanced 0.95% to $476.10, according to Benzinga Pro data.

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