With almost three-quarters of all granted generative AI patents held by Chinese companies, you would think its businesses are leading in areas like technology, investment, search numbers and market value. They are not.
Of the top 10 patent holders, only three are U.S. based, IBM, Alphabet and Microsoft, businesses which all now rely significantly on the Cloud and open-source for their revenue model. AI is reliant on robust hardware and semiconductors, which are more readily patentable than software or methods.
The number one recipient of GenAI patents is Tencent, one of the world’s largest entertainment the online services companies, with 2,074 patents. Most of its patents were likely issued in China where most of its business is conducted.
Rounding out the top ten GenAI patent holders, according to 2024 data compiled by IFI Claims for WIPO, and as reported by the Voronoi: financial services firm Ping An, Baidu, Alibaba, Samsung (Korea) ByteDance and BBK electronics.
Of the top 20 holders, only four are American, with Adobe added at #16 .
Strongest Position
Where does this leave the U.S.? Still in the strongest GenAI position, with by far the most investment in GenAI and the highest company market caps. OpenAI, 49% owned by Microsoft and the leader in search, is currently valued at around $300 billion.
The company said 500 million people are actively using its ChatGPT platform, each week, up from 400 million in February.
Still, China’s interest in AI development, especially its success with DeepSeek, a more efficient platform, must be taken seriously. Also, it will be difficult for Western nations to compete with Chinese companies’ use of AI in domestic manufacturing and serving the unique needs of its 1.4 billion inhabitants.
Quantity vs. Quality
“China may be winning the AI patent race in terms of sheer volume, with almost 13,000 granted patents, but the U.S. (8,609 patents) dominates in terms of impact,” reports R&D World.
“American AI patents are cited nearly seven times more often than Chinese patents (13.18 vs 1.90 average citations).
“Many Chinese firms like the Industrial and Commercial Bank of China and State Grid Corporation file exclusively within China, while larger firms such as Huawei and Tencent have a more diversified AI patenting strategy. Similarly, companies such as Intel Corporation and South Korean tech giant Samsung Electronics Co., Ltd. file across 10 or more jurisdictions.”
Through 2024 the U.S. had invested $471 billion in AI; China, $119 billion.
The leading AI patent holders by nation: China, U.S., Korea, Japan and Germany, followed by UK, Netherlands, Sweden, Finland and Taiwan.
The net-net: AI company investment, value and adoption do not sync with patent grant figures, especially if those patents are issued in nations where enforcement is less meaningful. This topic will be covered in a future IP CloseUp post.
Image source: Veronoi; ft.com
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