The Artificial Intelligence News Source

One of the not-so-sexy aspects of Artificial Intelligence is the need for massive data centers containing thousands of high end computer servers to crunch the data used by AI.

This need for data centers – and the computer chips which power them – has created a new race between the United States and China.

This race between the United States and China for AI supremacy is heavily influenced by their competition in developing and securing advanced computer chips, which are crucial for AI data centers.

Key Points in the Chips Race:

1. US Dominance in Chip Design:

• The US leads in semiconductor design, holding an 85% global market share¹. This dominance is critical as semiconductors provide the computational power needed for training AI models and other advanced systems.

1. Export Controls and Sanctions:

• To limit China’s progress, the US has imposed export controls on high-end chips, restricting China’s access to advanced computing components¹². This has impacted China’s ability to develop and maintain supercomputers and manufacture advanced semiconductors for various purposes, including military applications¹.

1. China’s Response and Advancements:

• In response to US sanctions, China has implemented policies to boost its domestic chip production. Companies like Baidu and Tencent have stockpiled AI chips and are developing their own, such as Baidu’s Kunlun chips¹. Additionally, China has made significant strides, such as developing a photonic chip claimed to be 3,000 times faster than Nvidia’s A100¹.

1. Geopolitical Implications:

• The concentration of AI chips in specific regions has significant geopolitical implications. Countries with advanced AI infrastructure can enforce compliance and shape AI development and governance². The US and China are far ahead in this race, with much of the world lacking access to these critical resources².

1. Challenges and Dependencies:

• Both countries face challenges. The US, despite its design capabilities, relies on global manufacturing networks. China, while the largest semiconductor market, depends heavily on imports¹. This interdependence complicates the race for AI supremacy.

This competition is reshaping the geopolitical landscape, with both nations striving to secure the technological edge necessary for economic and military power in the future.

(1) China vs US: who’s winning the race for AI supremacy. https://cybernews.com/tech/china-usa-artificial-intelligence-race/.
(2) Research Finds US, China Drive Global Divide in AI Chip Power – TIME. https://time.com/7015330/ai-chips-us-china-ownership-research/.
(3) Who’s making chips for AI? Chinese manufacturers lag behind US tech giants. https://www.nature.com/articles/d41586-024-01292-1.
(4) and Important – Factor in the AI Arms Race – The Diplomat. https://thediplomat.com/2024/07/the-most-misunderstood-and-important-factor-in-the-ai-arms-race/.