Stakes Rising In The US-China AI Race | Global Finance Magazine

Stakes Rising In The US-China AI Race | Global Finance Magazine 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 

 
 
 
 

 
 
 
 

 
 

 

 
 
 
 

 
 
 
 

 

 

 

 
 
 
 
 
 

 
 

 

 
 
 
 
 
 
 
 

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 Home Economics, Policy & Regulation Stakes Rising In The US-China AI Race 

 

 
 
 Author: Andrew Singer 

 
 
 
 
 
 

 
 

 

 
 
 

 
 

 The intensifying competition between the United States and China over artificial intelligence (AI) is not merely an extension of their long-standing trade disputes; it is a critical battle that could reshape global power dynamics.

 

 Two recent developments have amplified the significance of this struggle: the war in Ukraine, which has vividly illustrated how AI, particularly in the form of AI-enhanced drones, can be weaponized, underscoring the technology’s lethal potential in modern warfare; and the November 2022 launch of OpenAI’s ChatGPT—a generative AI (GenAI) chatbot that has showcased AI’s capacity to transform nearly every facet of economic and social life.

 

 These advancements have thrust AI into the heart of national security and geopolitical discussions. As the Goldman Sachs Artificial Intelligence blog notes, “While the United States, China, and Russia do not agree on many things, they all acknowledge that AI could reshape the balance of power.” This sentiment is echoed by AI Now, a research institute, which asserts that “AI is now firmly positioned as a critical strategic technology for the geopolitical and economic ambitions of nation-states.”

 

 What makes this AI race particularly compelling is the stark contrast in how the two superpowers approach technological innovation. China’s strategy is characterized by centralized planning, with direct state funding funneling into specific AI projects and the development of national computing centers. In contrast, the US has primarily relied on private enterprises to drive AI advancements, many of which utilize open-source models. Government support in the US has been relatively modest, with few export controls imposed on the industry until recently.

 

 Arcesati, Mercator Institute for China Studies: US-developed open-source AI models helped Chinese companies narrow the gap by leveraging existing architectures 
 

 Despite the US’s current leadership in GenAI, Andrew Rogoyski, director of innovation and partnerships at the Surrey Institute for People-Centred Artificial Intelligence at the University of Surrey in Guildford, UK, cautions that this dominance may not be permanent.

 

 “China showed that it is capable of taking a long-term view, something Western nations often struggle to do. This can deliver benefits: China’s increasing dominance of the electric vehicle market, for example,” Rogoyski explains. This long-term strategic thinking could enable China to close the gap and possibly surpass the US in AI capabilities, making the stakes of this rivalry higher than ever.

 

 The U.S. Leads The Race,

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