China and the U.S. Are in a Race for AI Supremacy
Episode
17 min
Read time
2 min
Topics
Startups, Fundraising & VC, Artificial Intelligence
AI-Generated Summary
Key Takeaways
- ✓China's State Strategy: Beijing mobilizes local governments, subsidizes cloud computing infrastructure, and builds massive data centers in remote areas like Inner Mongolia to accelerate AI development through centralized coordination and renewable energy.
- ✓DeepSeek Breakthrough: Chinese startup DeepSeek built a large language model nearly matching OpenAI's capabilities using significantly less computing power and money, demonstrating China can engineer efficient chip and algorithm combinations despite US export restrictions.
- ✓Chip Workaround Tactics: Huawei plans to link up to one million lower-quality chips together in swarms to compete with advanced US processors, applying China's mass production capacity to overcome technological limitations from US export controls.
What It Covers
The US and China compete for AI dominance in a new cold war, racing to develop advanced models while balancing innovation against safety concerns and technological restrictions.
Key Questions Answered
- •China's State Strategy: Beijing mobilizes local governments, subsidizes cloud computing infrastructure, and builds massive data centers in remote areas like Inner Mongolia to accelerate AI development through centralized coordination and renewable energy.
- •DeepSeek Breakthrough: Chinese startup DeepSeek built a large language model nearly matching OpenAI's capabilities using significantly less computing power and money, demonstrating China can engineer efficient chip and algorithm combinations despite US export restrictions.
- •Chip Workaround Tactics: Huawei plans to link up to one million lower-quality chips together in swarms to compete with advanced US processors, applying China's mass production capacity to overcome technological limitations from US export controls.
Notable Moment
Both governments now relax AI safety regulations to accelerate development, with China simplifying its 70,000-question testing requirement and the US adopting hands-off regulation despite bioweapon and warfare risks.
Episode Transcript
A new cold war has broken out between The US and China over artificial intelligence. The US and China are locked in a competition, but there are some really striking similarities to the tech races between The US and Soviet Union that we saw during the Cold War. That's my colleague Josh Chin. In the sense that you have two rival competing in technologies with really, really broad potential applications. During the Cold War, The Soviet Union and The US were the two strongest countries in the world. And they were racing against each other to create transformational technologies, like nuclear weapons, rockets and satellites, and advanced computing. Josh says that history is repeating itself with AI. You know, this is the first general use technology manages to run manages to run away with a lead stands to have just humongous advantages in economic and military and scientific power, as well as, like, global influence. And like with the cold war, the AI race also has the potential to accelerate a technology that many fear could have dire consequences. What happens if we create a superintelligence that doesn't have humanity's best interests at heart? There's a lot of people in in government and industry and the military who worry that this race dynamic is actually leading both sides to sort of downplay safety concerns, which are really significant with a technology this powerful. Welcome to The Journal, our show about money, business, and power. I'm Ryan Knudson. It's Tuesday, December 2. Coming up on the show, the AI cold war. This episode is brought to you by Zoom. The way we work is changing, and Zoom is leading the way with meetings, chat, docs, AI companion, and more together on one powerful platform. With everything connected, teams can stay focused, share ideas faster, and actually enjoy getting things done. From smart AI features to tools built for real collaboration, Zoom helps make your work day work for you. Ready to join? Visit zoom.com/podcast to learn more and zoom ahead. This message is brought to you by Apple Card. Apple Card members can earn unlimited daily cashback on everyday purchases wherever they shop. This means you could be earning daily cash on just about anything, like a slice of pizza from your local pizza place or a latte from the corner coffee shop. Apply for Apple Card in the Wallet app to see your credit limit offer in minutes, subject to credit approval. Apple Card issued by Goldman Sachs Bank USA, Salt Lake City branch. Terms and more at applecard.com. In 2017, Beijing announced that it planned to lead the world in AI by 2030. But back then, the country was focused on a specific aspect of AI, something called computer vision. So computer vision basically is is exactly what it sounds like. It's a technique in which machines teach themselves how to recognize objects, you know, from coffee mugs, cats, dogs, airplanes, and people's faces. It is what's being used, …
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company
“Chinese startup DeepSeek built a large language model nearly matching OpenAI's capabilities using significantly less computing power and money, demonstrating China can engineer efficient chip and algorithm combinations despite US export restrictions.”
“Huawei plans to link up to one million lower-quality chips together in swarms to compete with advanced US processors, applying China's mass production capacity to overcome technological limitations from US export controls.”
“Chinese startup DeepSeek built a large language model nearly matching OpenAI's capabilities using significantly less computing power and money”
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