Economy February 19, 2026

Altman Says Chinese Tech Progress Has Been 'Amazingly Fast' as Competition for AGI Intensifies

OpenAI CEO lauds advances across China’s tech stack while outlining revenue plans and growth priorities for ChatGPT

By Caleb Monroe
Altman Says Chinese Tech Progress Has Been 'Amazingly Fast' as Competition for AGI Intensifies

OpenAI CEO Sam Altman said Chinese technology companies have moved at an 'amazingly fast' pace and made 'remarkable' advances across much of the tech stack, while noting uneven progress across different areas. His remarks come amid a race between China and the United States to develop artificial general intelligence (AGI). Altman also discussed OpenAI's pursuit of new revenue sources, including advertising within ChatGPT, and reiterated the company's focus on rapid user growth alongside sensible unit economics and a measured approach to profitability.

Key Points

  • Sam Altman described Chinese tech progress as "amazingly fast" and "remarkable," noting some areas where companies are near the technological frontier and other areas where they lag - impacts: AI and semiconductor sectors, technology equities.
  • China is scaling domestic chipmakers with the aim of competing with companies like Nvidia, while Chinese AI companies have experienced significant stock rallies as investors buy stakes - impacts: semiconductor manufacturing, public markets.
  • OpenAI is pursuing new revenue streams, including experimenting with advertising in ChatGPT, and is focused on accelerating rapid user growth while keeping reasonable unit economics and delaying profitability until it deems the timing appropriate - impacts: digital advertising, platform monetization, investor returns.

OpenAI Chief Executive Sam Altman described the pace of technological progress among Chinese firms as "amazingly fast" and "remarkable" in recent remarks to CNBC, highlighting rapid advancement across the broad technology stack but noting that performance varies by domain.

Altman said that in some areas Chinese companies are converging on the technological frontier, while in other areas they continue to trail. His comments came against the backdrop of a bilateral competition to build artificial general intelligence - AI systems that match human capabilities.

China is pursuing a strategy to scale its domestic semiconductor industry, aiming to develop chipmakers capable of competing with current leaders such as Nvidia. At the same time, Chinese AI firms have seen large stock rallies as investors increase their stakes in the sector.

OpenAI itself is working to broaden its revenue base as part of a longer-term path toward profitability. Investors have put roughly $70 billion into the company, according to deal-counting platform Dealroom. The company has also been reported to be finalizing a fundraising effort on the order of $100 billion, CNBC reported earlier.

One specific revenue avenue Altman addressed is advertising within ChatGPT. He said the company is exploring ad formats but has not settled on an approach, with plans at an early stage.

"The ads that I have personally liked the most in recent years from tech companies have been sort of Instagram style ads where you discover something new that you might really like and otherwise wouldn't have known about," Altman said. "I think we've got a real opportunity to push in that direction with ads in ChatGPT."

Altman added that OpenAI is experiencing "extremely rapid growth" and will prioritize accelerating that growth while maintaining reasonable unit economics. He said the company will pursue profitability "when we think it makes sense."

The comments sketch a picture of parallel developments: an aggressive push by Chinese players to close technological gaps and capture market share, and OpenAI's efforts to monetize a rapidly expanding user base through new products and potentially advertising, all while balancing growth with financial discipline.


Contextual note: The items above summarize Altman's public remarks and related reported developments as presented in recent interviews and market reporting.

Risks

  • Uncertainty around monetization: Advertising within ChatGPT is in early stages and the optimal format has not been determined, creating revenue execution risk - impacts: digital advertising, platform economics.
  • Fundraising and investor return risk: Reports that OpenAI is finalizing a large fundraising round introduce uncertainty about capital needs and dilution, affecting investor outcomes - impacts: venture capital and equity investors.
  • Competitive risk in technology development: While some Chinese companies are near the frontier, uneven progress across domains leaves open the potential for competitive shifts that could disrupt market positions and valuations - impacts: AI development, semiconductors, public tech equities.

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