Chinese AI labs now hold nine of the world’s top ten text-to-video generation models, according to research firm Artificial Analysis.

ByteDance and Kuaishou Technology lead the sector with backing from industry giants Alibaba and Tencent. These firms are gaining global adoption and challenging the historical dominance of U.S. technology companies.

Leadership in video AI provides a strategic advantage in developing world models that simulate physics and causality. These systems form the foundation for advancements in robotics and autonomous systems. China’s progress in video AI may determine the leader in the broader race for physical artificial intelligence.