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Why ‘Beating China’ in AI Brings Its Own Risks
The US is increasingly intent on winning the AI race with China. Experts say this ignores the benefits of collaboration—and the danger of unintended consequences.
For hyperscalers like Google, Microsoft, AWS, and Oracle, the rule introduces critical issues, including slowed or more complex international expansion, new compliance and legal costs, impact on global R&D, and uncertain enforcement requirements. It has plowed tens of billions into helping local players catch up technologically or scale capacity in core areas, resulting in significant changes within the semiconductor industry and its ability to support the advanced hardware for developing frontier AI models. Paul Triolo: There is a growing link between conservative venture capitalists, mostly located in Silicon Valley, and technology companies whose business models depend on hyping the China threat.
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