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US-China AI Race Prompts Countries to Reassess Ownership of Digital Infrastructure

The US–China AI race is forcing countries to reconsider who owns their digital infrastructure

In the ever-evolving landscape of global technology, the race for artificial intelligence (AI) dominance between the United States and China is not just a battle for innovation; it is reshaping how countries perceive their digital sovereignty. As nations find themselves caught in an increasingly polarized environment, the implications for their technological futures are profound.

At the heart of this contention lies a binary choice presented to middle powers: align with US technology or embrace Chinese alternatives. This isn’t merely a question of preference; it’s a strategic decision that carries significant weight in terms of national security, economic interests, and global influence. For many countries, this dilemma compels a careful balancing act between realism and ambition, as they seek to maintain control over their digital infrastructure while striving for technological progress.

The urgency surrounding the AI race has intensified in recent months. High-profile statements, such as those from Microsoft President Brad Smith, underscore a zero-sum approach that characterizes this competition. During a Senate hearing, he emphasized that the ultimate victor in the AI race will be determined by which technology becomes the standard in the global marketplace. This assertion reflects a broader concern that the eventual outcome may not just determine technological leadership but also shift the balance of power in international relations.

As nations grapple with this high-stakes landscape, the United States has ramped up efforts to enhance the appeal of its AI offerings. This is especially evident in light of a “charm offensive” in Europe, where relations had recently soured, particularly following remarks made by US Vice-President JD Vance in Munich. His comments, which criticized EU regulatory practices as undemocratic, highlighted the complexities of fostering international collaboration amid growing tensions. Yet, the US appears to be refocusing its strategy, moving to repair diplomatic ties in an effort to encourage European nations to adopt its technology.

In contrast, China’s advancements in AI and technology are proving to be formidable competitors. The Chinese government’s investments in artificial intelligence and its commitment to a comprehensive technological strategy pose a direct challenge to US dominance. As the Chinese pursuit of AI becomes more aggressive, countries are compelled to weigh their options carefully. For many middle powers, this not only involves assessing technological capabilities but also considering ideological alignment and political considerations.

Meanwhile, smaller nations are increasingly vocal about their desire to maintain sovereignty over their technological choices. Many are exploring partnerships that enable them to develop homegrown alternatives or collaborate with multiple countries to avoid over-reliance on any single superpower. This shift reflects a growing awareness of the strategic importance of digital sovereignty, as nations strive to secure their own technological futures in a world dominated by competing giants.

The increasing scrutiny of supply chains and hardware dependencies further complicates the decision. Countries are beginning to recognize that their choices in AI technology can have lasting impacts on national security. As they weigh the options presented by the US and China, many middle powers are focusing on cultivating diverse and resilient digital ecosystems that prioritize a broader range of alliances and partnerships. This strategy not only secures their interests but also contributes to a more balanced global technology landscape.

In the grand scheme of this technological race, the implications extend beyond mere competitiveness. The evolving narrative surrounding AI and digital infrastructure is redefining the rules of engagement among nations, leading to a seismic shift in how sovereignty and influence are perceived in the digital age. As the battle between American and Chinese technologies unfolds, the choices made by countries today will undoubtedly carve the path for a new world order in technology and beyond.

Click here to continue reading the full version of this Expert Comment on the Chatham House website.

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