Eight-year-old Timmy sat with his head in his hands, deep in thought as he played chess against a robot powered by artificial intelligence. This was no high-tech showroom or research lab—this robot was a part of his everyday life, sitting on a coffee table in his Beijing apartment.

On the first night it arrived, Timmy hugged his little robotic companion before going to bed. He had not yet named it, but the bond was already forming. "It's like a little teacher or a little friend," he said, eagerly showing his mother the next move he was considering. The robot responded with encouragement, its round eyes blinking on the screen. “Congrats! You win,” it chimed before resetting the board and promising to play better next time.

This scene captures the rapid integration of AI into everyday life in China, a country determined to become a global tech superpower by 2030. The launch of DeepSeek, a breakthrough AI chatbot in January, was just the beginning. Investment in AI is pouring in, with more than 4,500 firms in the industry competing for dominance. Schools in Beijing are set to introduce AI courses for primary and secondary students, while universities are expanding AI-related programs to accommodate growing interest.

Timmy’s mother, Yan Xue, sees AI as an inevitable part of the future. “Children should get to know it as early as possible. We should not reject it,” she said. She was convinced of the value of the $800 AI-powered chess-playing robot, which also teaches the strategy board game Go. Plans are already underway to incorporate a language tutoring function into the device.

The Chinese government’s commitment to AI development dates back to 2017, when it declared the technology to be “the main driving force” of the country’s progress. With economic challenges such as US-imposed tariffs affecting growth, President Xi Jinping is doubling down on AI as a key industry for national advancement. Beijing has committed to investing 10 trillion yuan ($1.4 trillion) over the next 15 years, and a new 60 billion yuan AI investment fund was launched in January, just as the US tightened export controls on advanced chips.

Despite these restrictions, Chinese firms are proving their ability to compete. DeepSeek’s unexpected success stunned Silicon Valley, showing that China could quickly close the AI gap.

The emergence of DeepSeek is just one example of China’s growing AI dominance. Tommy Tang, who has been marketing his company’s chess-playing robot for six months, has encountered surprise from customers. “They expect me to come from the US or Europe,” he said. “There’s always a moment of silence when I tell them I’m from China.”

His company, SenseRobot, has already sold over 100,000 units and secured a deal with the major US retailer Costco. The firm’s robots have even beaten chess Grand Masters, showcasing China’s engineering capabilities.

China’s AI success is largely driven by its massive pool of skilled professionals. In 2020, more than 3.5 million students graduated with STEM degrees—more than any other country. Beijing is leveraging this talent, with President Xi emphasizing that “building strength in education, science, and talent is a shared responsibility.”

Shanghai-based AI toy manufacturer Whalesbot is one of many firms capitalizing on this trend. It produces educational AI toys that teach coding to children as young as three. According to Abbott Lyu, the company’s vice president, China has a competitive edge in smart hardware and AI education robots. “The success of DeepSeek has shown the public that AI is not just a concept—it is changing lives.”

China’s leading AI firms, dubbed the “six little dragons” by the internet, include DeepSeek, Unitree Robotics, Deep Robotics, BrainCo, Game Science, and Manycore Tech. At a recent AI fair in Shanghai, companies displayed everything from search-and-rescue robots to a dog-like machine capable of backflips. In one exhibit, two teams of humanoid robots even played a game of football, with a human handler theatrically carrying an injured "player" off the field.

“There’s a real excitement here,” said 26-year-old engineer Yu Jingji. “DeepSeek has made the world take notice.”

While China’s AI progress is impressive, it has also raised concerns among foreign governments. AI thrives on data, and with nearly a billion mobile users compared to just over 400 million in the US, China has a distinct advantage in data collection.

Western countries worry that AI-powered Chinese apps such as DeepSeek and TikTok could provide data to the Chinese Communist Party. The US, South Korea, and Taiwan have already imposed restrictions on these platforms, citing security risks. Meanwhile, Chinese firms insist that privacy is a priority. “Privacy is a red line for our company,” said Tang.

Despite these geopolitical tensions, China’s AI industry remains determined to push forward. As Beijing Daily noted, “DeepSeek’s rise has triggered hostile reactions, but China’s AI development remains unstoppable.”

China is not only developing AI but also reshaping the way it is manufactured. Tang’s company, for instance, faced a challenge: the robotic arm needed for its chess-playing device was expensive, driving up costs to $40,000 per unit. To overcome this, they used AI to optimize the manufacturing process, bringing the price down to just $1,000.

“This is real innovation,” Tang said. “We’re using AI to improve engineering itself.”

With state media already showcasing factories filled with AI-powered humanoid robots, China’s AI ambitions extend beyond consumer gadgets. The government is promoting AI-driven automation in industries such as elderly care, positioning the technology as a long-term solution to the country’s aging population crisis.

President Xi has repeatedly emphasized the importance of “technological self-reliance,” particularly in the face of US export restrictions on advanced chips. While China has made impressive strides, its leaders acknowledge that there is still a long way to go. Beijing Daily recently warned against "AI triumphalism," stating that the country is still in "catch-up mode."

Nevertheless, China’s AI boom is undeniable. The country is investing heavily in innovation, preparing for a marathon race that it intends to win.