The world has entered an AI gold rush in recent years, as companies scramble to capitalize on the potential of emerging technologies. The stakes are high, and it’s no surprise that two of the world’s largest powers – the United States and China – have taken a keen interest in this sector. This rivalry has been given even more fuel by the potential looming shortage of microchips, a critical component in AI hardware.
The most recent moves by the United States Department of Defense (DoD) support this thesis. The DoD announced it is investing a whopping $7 billion towards AI, but with a twist. It stated it would not work with any firm that is “subject to the control of a foreign adversary”. This is undoubtedly a thinly-veiled attack on Chinese companies, many of which are backed by the Chinese government.
Nevertheless, the U.S. is not the only nation taking a stand in the AI race. China has recently rolled out its “dual circulation” policy, a program designed to create a dynamic AI ecosystem in the country. As part of this, $1.26 billion was reserved for research and development in the sector. This, alongside China’s efforts in artificial intelligence applications, shows the nation is serious about its involvement in the race.
Furthermore, there is the growing shortage of microchips to consider. It is hard to imagine the AI market continuing without microchips, so the fact that major chip manufacturers have increased their prices substantially due to massive demand has manufacturers and tech companies on alert. Microchip shortages are already being felt in Asia, and it is likely that more price increases will occur as the industry expands.
It remains to be seen how the current AI gold rush will ultimately unfold. What we do know is that it is a battle between two of the world’s most powerful nations, with microchips – and their availability and pricing – being a crucial factor. Thus, the competition has already started and is only expected to become more intense as nations continue to vie for the resources that will define the course of AI in the years to come.