U.S. vs. China AI spending gap widens

Watch on YouTube ↗  |  February 10, 2026 at 19:57  |  4:09  |  CNBC
Speakers
Deirdre Bosa — Anchor/Reporter, CNBC Tech Check

Summary

CNBC's Deirdre Bosa explains that US AI breakthroughs are being treated by the market as threats to incumbent software, brokerage, gaming, and legal services sectors, while similar breakthroughs in China are being treated as opportunities. She contrasts massive US AI capex, over half a trillion dollars, with China's roughly $70 billion, noting Chinese labs are still shipping competitive models and preparing several releases before Lunar New Year. Bosa also discusses Chinese efforts to reduce reliance on Nvidia by using Huawei chips, while saying American advanced chips are still needed for now.

  • US brokerages fell after Altruist launched an AI-powered tax planning tool.
  • US software, gaming, and legal services are being repriced as AI disruption threats.
  • Chinese media and gaming stocks rallied on ByteDance's new AI model.
  • China's AI spending is far below US big tech but competitive models are emerging.
  • Five major Chinese model releases are expected before Lunar New Year.
  • Chinese labs are testing Huawei chips, but Nvidia demand persists for now.
Ideas
Deirdre Bosa Anchor/Reporter, CNBC Tech Check 0:25
AI tools threaten brokerage business model.
US brokerages sold off after startup Altruist launched an AI-powered tax planning tool that automates work advisors charge thousands for. Although the tool is not about to replace Schwab, it shows AI is becoming easier for non-technical users to use, which is enough for the market to reprice the entire brokerage sector as a disruption threat.
IAI MED
Deirdre Bosa Anchor/Reporter, CNBC Tech Check 0:47
AI disruption threatens US software incumbents.
The US software sector as a whole is being decimated because every AI breakthrough is now seen as a threat. AI tools are getting easier for non-technical people to use, and the unknown second- and third-order effects have already hit gaming and legal services, creating broad disruption risk for incumbents.
IGV HIGH
Deirdre Bosa Anchor/Reporter, CNBC Tech Check 0:58
Chinese media, gaming rally on AI breakthroughs.
In China, AI breakthroughs are being priced as opportunities rather than threats. ByteDance's new image and video model fueled a rally in Chinese media and gaming stocks, the opposite of how a similar Google model announcement hurt US gaming names, and more Chinese model releases are expected before Lunar New Year.
KWEB HIGH
Deirdre Bosa Anchor/Reporter, CNBC Tech Check 1:10
China AI catching up on lower spend.
China's top tech companies are on track to spend only about $70 billion on AI versus over half a trillion dollars by US big tech, yet they are still shipping competitive models and going global. With at least five major Chinese model releases expected before Lunar New Year, the market is questioning whether massive US AI capex is necessary and seeing Chinese AI catch-up as an opportunity.
China AI MED
Deirdre Bosa Anchor/Reporter, CNBC Tech Check 2:20
China builds domestic AI chip capability.
Chinese AI labs are following a domestic hardware playbook. Although everyone still wants Nvidia chips, a model called GLM Kelly was reportedly built entirely on Huawei chips, and while that is not fully there yet, Chinese government backing is accelerating the country's chip ambitions and bringing domestic hardware closer.
China semiconductor/chip supply chain MED
Deirdre Bosa Anchor/Reporter, CNBC Tech Check 2:29
Nvidia demand persists despite Huawei substitution risk.
Nvidia chips remain in demand even in older generations as Chinese labs still want American advanced chips, but Chinese models running on Huawei chips are getting closer. The setup is mixed: Nvidia demand persists for now, while domestic Chinese substitution is a developing risk.
NVDA MED
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This CNBC video, published February 10, 2026, features Deirdre Bosa discussing IAI, IGV, KWEB, China AI, China semiconductor/chip supply chain, NVDA. 6 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Deirdre Bosa  · Tickers: IAI, IGV, KWEB, China AI, China semiconductor/chip supply chain, NVDA