The race for AI supremacy has become a new flashpoint in the growing and increasingly dangerous competition between the United States and China. While both nations are pouring billions into artificial intelligence technology, their approach to regulation and development couldn’t be more different. The stakes couldn’t be higher. AI has recently gotten the attention as perhaps the most important driver of future economic and military power in the 21st century.
With President Joe Biden at the helm, the U.S. government’s whole regulatory framework is in a major transition. His goal is to create concrete guardrails for equitable AI development and address technology’s risks. Their predecessors in the Trump administration devoted considerable energy to cutting regulatory red tape to encourage fast-tracked AI development. This rivalry is emblematic of wider geopolitical tensions and ambitions, with either country seeking to secure global leadership in this revolutionary technology.
Historical Context of Technological Competition
The race is far from a new pursuit of technological supremacy. The realization of nuclear fission in 1938 was one of the most seminal scientific breakthroughs. Unfortunately, this remarkable scientific discovery bore nuclear weapons that peaked with the United States’ first successful atomic bomb test in July 1945. This historical context is a useful illustration of how at times technological breakthroughs have the potential to upend existing global power structures.
Fast forward to today, the U.S. and China are locked in a similar race, this time centered on AI capabilities. With each country acknowledging the limitless possibilities of AI, they are pouring billions into becoming global powerhouses. The Chinese government is said to have devoted upwards of $150 billion to bolster its AI sector. Their aim is to be world-leading by 2030.
“By 2030, China’s AI theories, technologies, and applications should achieve world-leading levels, making China the world’s primary AI innovation centre.” – Chinese government
In the United States, we’ve seen large tech companies invest approximately $800 billion to $1 trillion in the development of AI. Nvidia has been a remarkable beneficiary in this environment, recently becoming the world’s first $4 trillion company. The company’s valuation exploded, recently surpassing $100 billion in 2017 to over $4.2 trillion today, showing the massive financial stakes at play.
Divergent Regulatory Approaches
While the U.S. focuses on regulatory oversight under Biden’s administration, it must contend with the Trump administration’s legacy of promoting deregulation. Trump’s AI plan emphasized “removing red tape and onerous regulation,” aiming to accelerate technological advancements without stringent governmental oversight.
In a recent executive order, the National Institute of Standards and Technology received directives to “eliminate references to misinformation, diversity, equity, and inclusion, and climate change” in AI models. While this move is clearly intended to further a general effort to simplify regulatory frameworks, the implications of purposely ignoring ethical ramifications are troubling.
These are serious concerns, and the Biden administration appears to be taking them seriously with a focus on creating responsible AI. On May 30, 2023, hundreds of AI experts published the “Statement on AI Risk,” emphasizing the need for comprehensive guidelines to mitigate risks associated with AI technologies. The recent statement emphasizes the immediate need to address risks of catastrophic harm threatened by advanced, powerful AI systems.
“Mitigating the risk of extinction from AI should be a global priority alongside other societal-scale risks such as pandemics and nuclear war.” – AI experts
The Productivity Commission has taken specific objectives, which are sensible given its approach. These goals are meant to increase trust in the use of AI technology among consumers and enterprises. At the heart of it all is a commitment to crafting an approach that encourages innovation and development while promoting safety, security, and ethical considerations.
Advancements in Chinese AI Technology
Chinese industry has made great strides in AI technology development, with some recent achievements that threaten the primacy of American firms. DeepSeek just released its first open-source model R1. It provides performance to compete with the best of the American models, but at a much cheaper price. That would be a positive development, although such innovations certainly signal that China is quickly catching up on U.S. technology.
Further, Moonshot AI has released Kimi K2, an open-source model that can independently carry out complicated tasks. Such developments are not surprising given China’s goals to position itself as a competitive power in the booming global AI ecosystem.
Unitree Robotics has released humanoid robotics that are heavily laden with AI. These sophisticated machines, featuring voice and image recognition technology, cost an average of $5,900. However, Chinese firms are quickly overtaking in the race. They’re innovating in ways that could fundamentally disrupt established industries.
In 2017, the US-based chipmaker Nvidia nabbed China’s Baidu as a partner on its Open AI Platform. Combined, they unlocked the potential of Nvidia’s chips for new AI applications and leveraged the enormous Chinese market. This partnership is a prime example of the collusive and interdependent nature of global tech development in the face of increasing competition.
The Future of US-China Relations in AI
Every day, both countries are moving closer to the technological edge. The nature of their future interactions will be determined by how much they cooperate, compete, and are regulated. Donald Trump remarked on America’s competitive stance in this domain:
“The United States is in a race to achieve global dominance in artificial intelligence (AI).” – Donald Trump
Amidst this competition, conversations about ethical considerations and the implications on society as a whole are more important than ever. These differing regulatory approaches between the two nations can have critical impacts on the two countries’ respective AI industries. These divergences, of course, affect their larger geopolitical partnerships.
