Shark Tank investor and entrepreneur, Kevin O’Leary, issued a significant warning in late 2025 about the position in the global AI race. Kevin O’Leary argued that the regulatory processes of the United States are enabling China to go beyond the limits in the development of AI.
Kevin’s arguments show increasing concerns among technologists and leaders that structural and regulatory hurdles weaken its edge with China. Undoubtedly, China is one of those nations that has less bureaucratic control, along with a central push towards the deployment of technology.
O’Leary’s criticism is not about tech leadership; rather, it is about economic competitiveness, national security, and wider results of the policy, which is shaping the future of significant innovation. Let’s have an in-depth analysis of why it is important and the wider context of global artificial intelligence.
O’Leary’s Core Assertion: Red Tape Is Slowing the U.S. Down
Kevin O’Leary, along with several other investors, has been very vocal about the rivalry between the U.S. and China, specifically about AI. Mr. Wonderful’s recent warning revolves around one core claim: that the U.S. regulations are the major reason why America is not ahead.
As per Kevin O’Leary, the delays around infrastructure permission, construction of data centers, and energy deployment are creating further delays that China does not have to grapple with.
In one of the recent interviews with the host Brian Kilmeade on One Nation, Kevin did not get away with the opportunity to speak about China. He mentioned that China is effectively working when it comes to AI advancements because it does not follow the same bureaucratic timelines that U.S. projects do.
In short, he said that a significant AI facility in China can start working within months, while similar projects might take years due to regulatory approvals in the U.S.
Regulatory Gridlock in the United States
As per O’Leary, sectors that are significant to AI infrastructure are one of the most critical sources of the U.S. weakness in regulatory gridlock.
Infrastructure Permits and Project Delays
China made a startling claim to build a 1.4 gigawatt AI facility and finish the infrastructure of that in under a year. This is one of the very few examples given by Kevin O’Leary, as the Chinese government is driven by centralized decision-making.
On the other hand, the U.S developers encounter issues like multiple permission layers, including local, state, and federal. There are a number of public and legal issues raised by stakeholders.
Similar to data centers and energy installations, the hurdles can act as a hindrance to AI infrastructure and further undermine the computing capacity and ability to scale faster.
Energy and Power Issues
As we all know, energy is one of the key requirements for artificial intelligence; hence, massive servers and data centers need enormous electricity and cooling capability. Many sources and reports state the fact that China is heavily investing in its energy infrastructure for future advantage, and from a structural viewpoint.
Though America has strong technological capabilities and assets, including semiconductor design and AI research, if these technologies cannot be leveraged rapidly, these advantages are undermined.
China’s Regulatory Advantage
Let’s have a closer look at why China has an edge in this context. It all comes down to regulatory philosophy and decision speed.
- According to China’s rules and regulations, its political system enables top-to-bottom authorization. Further, it avoids years of federal review.
- Without any requirement for public consultation or legislation. Chinese authorities and incumbents can collaborate on data center construction and the energy grid.
- As China has a centralized system, unlike the decentralized one, it allows China to mobilize capital. Also, it helps labor faster towards priorities like artificial intelligence.
Kevin claims that the regulatory issues are not just about compliance. Instead, they shape how fast and far these technologies can be applied across the nation.
This is not just an option. Rather, it can develop asymmetrical competition within nations that prioritize procedural growth and rapid deployment. Nevertheless, many tech leaders have already warned that America’s regulatory processes are developed to safeguard public interest and safety.
🇺🇸🇨🇳 KEVIN O’LEARY: CHINA IS BEATING THE U.S. IN THE AI RACE – U.S. IS TOO SLOW TO COMPETE WITH CHINA
Kevin O’Leary just sounded the alarm: China is running laps around the U.S. in artificial intelligence, and it’s not because they’re smarter, it’s because they move faster.… pic.twitter.com/Lr5f8oKfk2
— Mario Nawfal (@MarioNawfal) December 23, 2025
Broader Tech Leadership Concerns
Kevin’s warning comes at a time when broader debates are already going on about America’s competitiveness in significant technologies:
AI Infrastructure vs. AI Research
Some of the greatest strengths of the U.S. lie in its foundational research methodologies and AI research. It is mostly led by private companies and colleges, while production and deployment require government permission and energy regulation.
However, this division matters because innovation without infrastructure cannot be manufactured efficiently, scaled, or broadly deployed.
Strategic Priorities
China is aiming to become a global leader in the development and use of artificial intelligence by the year 2030. It explicitly plans to identify AI as a national priority. Besides, to fulfil this goal, all its policies are in sync with investment, energy planning, education, and manufacturing.
Henceforth, this kind of combination is difficult to even replicate in democratic nations where courts and public choices shape approvals. Kevin’s comments highlight the viewpoint that structural changes and policy reforms are necessary for individuals to overcome the difficulties.
Takeaway
Kevin O’Leary’s assertion that U.S. regulations are letting China win the AI race feeds into a larger debate about global technology competition. His core argument is that regulatory delays, especially in infrastructure permitting and energy deployment, handicap America’s ability to rapidly scale the powers of AI.
In contrast, China’s centralized decision-making and fewer regulatory barriers allow it to build massive facilities in months rather than years, creating a competitive edge.
