AI Race: US vs. China

The US and China are engaged in intense competition to achieve global dominance in artificial intelligence. The US has launched initiatives, such as the AI Action Plan, to accelerate innovation, build AI infrastructure, and lead in international diplomacy and security. These initiatives aim to foster an environment where private-sector innovation thrives, removing regulatory barriers and incentivising AI development and adoption. The US is also focused on ensuring ideological neutrality in AI, particularly in government procurement.

Despite the US's lead in AI chip technology and private investment, concerns exist about infrastructure, energy capacity and manufacturing. Nvidia's CEO has warned that the US risks falling behind China in building data centre infrastructure and securing the necessary power resources to support AI growth. China's rapid construction timelines and increasing energy capacity pose a challenge to the US. China is also making strides in AI research output and talent development, producing more papers and graduating more computer scientists than the US. While the US focuses on building large AI models, China is surging ahead in embodied AI and manufacturing automation.

Both countries released national AI strategies in July 2025 with global aims. The US promotes AI exports to allies, while China promotes open cooperation. The US approach risks becoming too narrow, while China's open approach may give it an advantage in global AI influence. The US must also address its manufacturing and energy challenges to maintain its lead in the AI race.