Artificial intelligence (AI) is no longer simply a technological innovation – it has become the defining fault line in global geopolitics, illuminating a widening chasm between nations prepared for the future and those falling dangerously behind.
The escalating semiconductor restrictions by the Donald Trump administration, pressuring allies like Japan and the Netherlands while contemplating stricter limits on Nvidia’s AI chips, underscore the intensity of the US-China rivalry. However, China’s AI ambitions remain undeterred, exemplified by Alibaba’s staggering 380 billion yuan (US$48.3 billion) AI infrastructure investment – the largest private computing initiative China has ever seen.
Despite restrictive US export controls, Nvidia’s chips, such as the H20 model designed to comply with American restrictions, continue to witness surging demand in China, driven partly by state-backed adoption and cost-efficient AI models from firms like DeepSeek. Shenzhen, Guangdong province and Hangzhou, Zhejiang province are aggressively advancing AI and robotics, reinforcing China’s innovation race.
Yet as history repeatedly shows – from the telegraph to the internet – early technological leaders not only dominate economically but also rewrite the rules of global influence.
This clash is far more than an economic rivalry – it is reshaping global geopolitics, shifting the axis of power in ways reminiscent of past industrial revolutions. The competition for AI supremacy represents a battle for strategic autonomy, economic security and geopolitical dominance.
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Does the arrival of China’s low-cost DeepSeek mean the end of Nvidia’s chip dominance?
Does the arrival of China’s low-cost DeepSeek mean the end of Nvidia’s chip dominance?
With US tech giants expecting to spend more than US$300 billion for AI infrastructure this year, alongside the ambitious US$500 billion Stargate Project, the stakes have never been higher. Meanwhile, China’s Alibaba, Tencent and Baidu collectively invested 50 billion yuan in AI infrastructure in the first half of 2024 – more than double their previous year’s investment, highlighting the fast pace of China’s ambitions.
