Sector Microscope Arm-race

AI arm race is heating up

More than two years after ChatGPT's debut, generative AI continues to make astounding advances at breakneck speed. The technology that powers all-purpose chatbots is transforming many aspects of life with its ability to spit out high-quality text, images or video, or carry out complex tasks.

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.The U.S. has been dominating in AI arm race around the globe with tech giants investing tons of money in chips, data centers and top-tier models. While the U.S. is in a leading position in AI and also sets more barriers including export control to curb Chinese development in AI, China has been managing to keep pace with it with bigger ambition.

DeepSeek 's release last month stunned the world because of its ability to rival Western players like ChatGPT, which bring a fresh inflection point for AI industry. It also escalated the wider geopolitical showdown between Beijing and Washington over tech supremacy.

U.S. President Trump has spoken of his desire to make the U.S. the "world capital of artificial intelligence" by reducing regulatory barriers and building AI systems free of "ideological bias". On the flip side, China wants to play a bigger role in global AI governance. In another words, the geopolitics of artificial intelligence will be in focus for the foreseeable future.

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