US and China Compete for AI Supremacy – The Battle for Control of Artificial Intelligence
Tech billionaires aren’t the only ones fighting
Tech billionaires aren’t the only ones fighting for control of AI. The US and China are too. The two world superpowers are competing with each other for everything from the intellectual know-how to design AI hardware and software to the raw materials that power artificial intelligence systems. Both countries are also using government subsidies to spur new advancements.
US dominance in generative AI systems
Where the US holds a commanding lead at the moment is in the development of generative AI systems, particularly large language models (LLMs), according to Frank Long with Goldman Sachs’ office of applied innovation.
These models, such as Open AI’s ChatGPT, utilize existing data as the basis for chatbots. This development is keeping the most sophisticated LLMs out of China’s reach for now, as the US can place export restrictions on high-performance semiconductors designed by companies like Nvidia, which are in intense demand across the AI world.
China’s countermeasures
China, however, is countering with its own moves. The country is restricting the export of chipmaking metals like gallium and germanium to the US. Additionally, China is amassing a new $27 billion chip fund to back its own major projects.
Talent and power alliances
The fight for global supremacy of AI was heavily discussed at the Web Summit’s annual technology conference. AI leaders from various sectors acknowledged the current edge held by the US and China. However, it’s still unclear which countries will leverage the technology to the greatest advantage over time.
Potential AI hubs could emerge in swing states like the United Kingdom, the United Arab Emirates (UAE), Israel, Japan, the Netherlands, and South Korea, according to a white paper by Goldman Sachs. These nations may be positioned to tap into the technology and form crucial AI alliances.
Asian countries like Taiwan, Japan, and South Korea, which are home to leading semiconductor manufacturers and design firms, are already at an advantage. Taiwan in particular holds a dominant position as the world’s sole manufacturer of advanced semiconductors.
Turning to Europe and the Middle East, the Netherlands excels with ultraviolet lithography machines, and the UAE has committed a $10 billion fund to invest in late-stage technologies. Israel has also attracted significant private AI investments.
Legislation, regulations, and incentives
Most countries have adopted national strategies to develop and protect against the potential risks of AI. Some have even started implementing regulations. The EU is expected to adopt new legal restraints around AI, with member states agreeing to the AI Act – the world’s first comprehensive legislation in this field.
On the other hand, the US and the UK are yet to pass federal laws specific to AI, though there have been executive orders and a growing number of state-level regulations. The UK, in particular, has rolled out its National AI Strategy and allocated sizable subsidies for chip development.
Preparing the workforce for AI
As AI supremacy becomes an essential goal, nations must focus on developing the right workforce and providing access to open-source AI models. Human capital and AI talent will play a vital role, with nations that prepare and invest in their workforces gaining a considerable edge.
The stage is set, and the battle for AI control between the US and China is in full swing. But as the global landscape adapts and technology advances, other countries and precursors to AI hubs may rise to prominence, shaping the future of AI on a global scale.
