China's AI Chews 98T Tokens, Leaves US Rivals 85% Behind in Chew Toy Race 🦷

Chinese artificial intelligence models processed 98 trillion tokens in June, outpacing US rivals by 85%, according to Apollo Global Management data cited by the Kobeissi Letter. Among the top 20 most-used models globally, Chinese systems handled 53 trillion more tokens than their American counterparts, with US usage totaling 53 trillion in the same period.

China's share of the 50 most widely used AI models worldwide reached roughly 40% as of May 2026, up from 5% at the start of 2025. That cohort of Chinese models expanded to around 20 over the period, a fourfold increase. US models in the top 50 declined to about 28 from 33 over the same stretch.

The June token usage figures mark an acceleration in Chinese adoption. Chinese token volume climbed 113% from May to June, while US usage grew 43%, widening China's lead from 24% in May to 85% last month.

The usage boom is unfolding against deepening friction between US and Chinese AI firms. Alibaba banned its staff from using Anthropic's Claude Code from July 10, citing back-door risks, and instructed employees to migrate to its proprietary Qoder tool. Anthropic had previously accused Alibaba of orchestrating the largest known distillation attack against it. The company has separately pressed Washington for tighter chip export controls, arguing decisive action could lock in a strategic advantage. "But if the US and its allies act now to address both issues, it may be possible to lock in a 12-24 month lead in frontier capabilities. A lead that large by 2028 would be enormously advantageous," it said.

Beijing is tightening oversight within its own borders. A regulatory purge removed more than 14,000 non-compliant AI products from Chinese networks this month as authorities move to enforce compliance across the sector.