The first 5nm chip in production was designed by a US company, Marvel. They are a fabless designer and yes, rely on TMSC and others as they diversify production. TMSC has understood their advantage is in production and has gone out of their way to not compete with the companies they manufacture product for. This manufacturing advantage will lessen as companies like Intel invest money in the high end lithography machines able to produce these specialized AI chips. I wouldn‘t count on chips being the limiting factor in the speed of AI adoption. As per usual, we’d have to anticipate they will continue to become more capable, more available and more affordable.

I mean they aren't sharing the most cutting edge material or the substantial amount of data used to build these networks. Here it's held by the collectors...Google, Tesla, Open A/I, NSA, etc. There the government (with the help of business) is the primary collector. All intellectual property there is the property of the government.

I agree with your premise but categorizing what the Chinese government is doing as "open science" is a bit of a stretch. Who are they sharing it with exactly besides their own government institutions or government backed companies? It's not like China is sharing their AI with the rest of the global scientific community to promote humanity.