One River Asset Management Chief Investment Officer Eric Peters published a commentary article on July 13, citing the view of a US hedge fund CIO who founded a company in Asia. The CIO said that there is an AI shortage, and that the market penetration of such products in the global economy is still less than 10 basis points, adding: “We haven’t rolled out this technology at a scale sufficient to matter.”
Anonymous CIO: AI global penetration is under 10 basis points
Based on Eric Peters’s citation, the CIO believes that the public debate about “cheap open-source AI versus expensive Anthropic AI is a false debate”; the real core fact is that AI’s penetration in the global economy is under 10 basis points, and the shortage issue is the key.
He said: “We’ve entered an era in which giants like Google, Microsoft, SpaceX, Tesla, and even JPMorgan Chase will, in some way, use tokens (AI tokens), which will make their businesses far ahead of all other companies.”
He also noted that AI has not yet been adopted in regulatory processes at banks, healthcare, and insurance companies because the hallucination problem is still being worked through, “but it will eventually be resolved.”
China’s “AI+” initiative: officially proposed in August 2025
According to Eric Peters’s article, in 2024 Beijing divided industry priorities into six future industries and six emerging pillar industries, and then officially proposed the “AI+” initiative in August 2025, positioning AI as a foundational, cross-sector technology and emphasizing its deep integration into the six pillar industries. China’s six future industries and six emerging pillar industries are as follows:
Six future industries (long-term cutting-edge technologies): embodied AI, brain-computer interfaces, quantum technologies, hydrogen energy and nuclear fusion energy, bio-manufacturing, 6G mobile communications
Six emerging pillar industries (near-term economic drivers): integrated circuits, low-altitude economy (drones/flying cars), intelligent robotics, aerospace, energy storage, biomedical
Anonymous CIO: Europe’s in-house AI is a pipe dream
Based on Eric Peters’s citation, the CIO said: “Europe’s autonomous R&D of artificial intelligence is a pipe dream—they think Mistral will become their LLM and then they can build data centers? They need Nvidia. They need a technology stack that integrates US and Asian intellectual property.”
Regarding the current state of China’s AI, he said: “China’s open-source models are extremely popular on Twitter. They’re not great at complex reasoning, but they’re very good at specific tasks and sub-agent work. Since these models run on the US technology stack, no Chinese innovators profit from them—AWS earns profits by producing tokens.”
He also mentioned that CXMT (a leading domestic DRAM company in China) is about to go public, and its disclosed information shows there are serious inefficiencies; Beijing will inevitably provide subsidies to cover its losses.
FAQ
What AI penetration figure did the One River Asset Management CIO cite?
According to Eric Peters’s article dated July 13, 2025, the hedge fund CIO he cited said that AI’s market penetration in the global economy is “still under 10 basis points,” and believes that current technology adoption is not yet sufficient to have the intended impact.
What is China’s “AI+” initiative, and when was it proposed?
According to reports, Beijing officially proposed the “AI+” initiative in August 2025, positioning AI as a foundational, cross-sector technology like power or infrastructure, and emphasizing its deep integration into the six emerging pillar industries. The initiative is being advanced in conjunction with the framework of the six future industries and six emerging pillar industries established in 2024.
Why are regulatory processes in banking, healthcare, and insurance not currently adopting AI?
Based on the cited account, the CIO said that AI has not yet been adopted in the regulatory processes of banks, healthcare, and insurance companies because “errors and hallucinations are being gradually eliminated,” but he believes these issues “will eventually be resolved.”
