The United States initially held a significant lead in artificial intelligence following the release of OpenAI’s ChatGPT in 2022, bolstered by export controls on advanced semiconductor chips. Experts once estimated this lead to be three years or more, placing American technology distinctly ahead of China’s. However, this gap is now narrowing, prompting a reassessment of US strategy regarding AI development and competition with China. The original focus on maintaining a substantial technological advantage is being challenged by China’s rapid progress in the field. Washington must now consider its next steps as the competitive landscape shifts. This evolving situation necessitates a recalibration of policy focused on AI to maintain its position in the ongoing technological rivalry. The article suggests a need for new strategies as the initial assumptions regarding the AI gap prove less certain.