China’s AI ‘Cold War’ With America Is More of a Slow Burn

If American policymakers seem worried about China’s ability to catch up with the US on artificial intelligence, they probably shouldn’t be.

Earlier this month, the US government threatened an Abu Dhabi tech holding company called G42 with punitive measures if it didn’t divest Chinese technology from its systems, according to reporting by Bloomberg News. Microsoft Corp. went on to take a $1.5 billion stake in G42, solidifying Silicon Valley’s relationship with a critical region for funding AI at the behest of the US — and at the expense of China.

This aggressive meddling to keep China’s ambitions at bay suggests its officials think China has a good chance of overtaking America’s lead in the generative AI race, kicked off by OpenAI Inc.’s release of ChatGPT in late 2022.

The concern is understandable. AI is likely to boost economic productivity over the next two decades, and supremacy can shape the future balance of commercial and military power. Harnessing AI effectively on the battlefield, for instance, offers nation-states a decisive advantage, whether through the coordination of complex surveillance operations or the use of autonomous weapons and drones.