that China loses the AI race, but wins the economic war by bleeding them dry
The AI race has two main players, but their bets are very different. While the United States has already spent $350 billion in AI (and plan to spend much more), China has only invested 100,000 million. Silicon Valley optimists start from the belief that AI will radically change the world and whoever masters AI will dominate the future. And if not? As they say in financial times, The United States could win this battle, but lose the economic war. USA. You have put all your eggs in the same basket. Exorbitant investments are guided by the belief that AI will change the world as we know it, that AGI will make humans finally stop working. It is an epic speech in which AI is presented to us as a kind of messiah that will save the world, one that completely ignores the alternative: that AI is a great technological leap, yes, but neither so revolutionary nor, above all, such a great business. And it’s not just a technology thing, investors are absorbed in the same obsession. China. In 2017, China announced the “Development Plan for a New Generation of Artificial Intelligence” in which they defined AI as a strategic technology. For China, AI is a national priority, but its approach is more pragmatic and much less speculative. You just have to look at their AI models, like DeepSeek, effective but very far from the very expensive ‘frontier models’ in which the US is investing. His vision for AI is not so much to transform the world, but rather to function as a tool to be even more efficient in different processes. a few months ago They announced the “AI+” planwhere they detailed the deployment of AI in six sectors: scientific and technological development, industrial applications, consumer services, public welfare, governance and security, and international collaborations. The AI war. We always hear the idea of this stark battle to dominate AI from the American side. In many cases, the AI war, like AGI, is another point of pressure for Silicon Valley to justify the tremendous expense or achieve its objectives. We have seen it recently with Jensen Huang pushing for the government to let him sell his chips in China and his argument revolved around the idea that China will achieve technological independence and then win the AI war. The paradox for the United States is that its own invention is benefiting its enemy. The AI war also functions as a pressure point for China: forcing the US to mortgage its economy to the technology they consider the future, while they overtake them in everything else. The economic war. The United States is betting everything on a single winning horse, while China has not stopped investing to ensure its dominance in other key sectors, such as electric cars, batteries, robotics and, above all, renewable energy. For China there are many futures, for the US only one. The commitment to diversification is going well. In 2024 China already manufactured 76% of electric cars sold worldwide and 80% of all lithium batteries. They are also the country with more industrial robot installationswhich gives them an advantage to continue being the factory of the world. There is much more, they are also undisputed leaders in other sectors such as the manufacture of drones, solar panels, high-speed trains and graphene. China’s AI is energy. China carries years investing in clean energy. According to Carbon Brief reportIn 2024 alone, China invested $940 billion, and it is not the year it spent the most. The curious thing is that energy is key for many sectors, especially AI. The United States knows this well and has already encountered a wall: They don’t have power for so many chips. Not only is China producing more energy, it is also is subsidizing it. Jensen Huang warned about this situation, ensuring that “China is going to win the AI race” thanks to the government’s energy aid. Trump, for his part, has discouraged renewable energies and the electric car industry. In the end it will turn out that, for the United States, it is AI to win or nothing to win. Image | Gemini In Xataka | China already has an army of 5.8 million engineers. His new plan involves accelerating doctorates