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 (NASDAQ:SPCX) most important rival in rocket technology.
Musk’s 2011 China Prediction Resurfaces Again
"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.
China is also by far the strongest competitor in AI
— Elon Musk (@elonmusk) August 19, 2026
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.
China Accelerates Its Reusable Rocket Push
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.
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.
China Has Nearly Erased America’s AI Lead
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.
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.
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.
Photo Courtesy: Frederic Legrand – COMEO on Shutterstock.com
