Elon Musk stated in an interview with China Media Group on September 23 that China will likely bridge the gap in AI computing capabilities within two to three years. He attributed this potential progress to advancements in domestic chip manufacturing and lithography technology.
Musk characterized Chinese large AI models as outstanding, noting their high efficiency per unit of compute. He highlighted China’s structural advantages in energy generation and manufacturing as factors that could accelerate the development of domestic semiconductor capabilities.
Since 2022-2023, US export controls have limited China’s access to high-end AI chips from companies like Nvidia. In response, Chinese firms such as Huawei and SMIC have increased their focus on developing custom ASICs and domestic lithography solutions.
The Tesla CEO advocated for reduced trade barriers and increased collaboration on AI safety regulations between the US and China. As of September 2026, Tesla has manufactured more than 4.5 million vehicles at its Shanghai facility.
