US AI Race vs China: Execs Say Exports and Infrastructure Hold the Key
The US-China AI competition took centre stage in a Senate hearing this week, with top tech executives urging Washington to rethink exports and infrastructure if it wants to keep its leadership position.
Why the US Leads (For Now) in the US-China AI Competition
The United States stays ahead in the AI race with China thanks mainly to its strong technology sector, world-class research universities, and a deep pool of AI talent. Microsoft, OpenAI, and AMD are among the leading American firms constantly pushing the boundaries of artificial intelligence.
Still, this lead will not last forever. That was the message to US lawmakers from Brad Smith (Microsoft), Sam Altman (OpenAI), and Lisa Su (AMD) at the Senate Commerce Committee hearing chaired by Senator Ted Cruz.
US AI Race vs China in Chip Export Policy
While America develops cutting-edge AI models and chips, China is determined to catch up. Last year, Chinese firm DeepSeek made headlines when it released an advanced AI model that could compete with OpenAI and Meta’s offerings at much lower cost. Meanwhile, Huawei’s entrance into the AI chip market raises new concerns on Capitol Hill due to its alleged links with Chinese surveillance operations.
Senator Cruz warned that restricting US AI chips too tightly could backfire. Microsoft’s President Brad Smith argued, “The number-one factor that will define whether the US or China wins this race is whose technology is most broadly adopted in the rest of the world.” Smith referenced the Huawei-5G situation as a warning that first movers in technology become hard to replace later.
At the same time, Washington has put strict controls on AI chip exports to China, citing fears that powerful US technology could boost the Chinese military or help spread propaganda. Both the Biden and Trump administrations enforced strict rules, though the Trump administration recently announced plans to replace or relax some restrictions.
What the AI Industry Wants from US Policymakers
A Focus on AI Exports and Spreading Democratic Values
American executives want rules that promote AI designed with democratic values, not just commerce. The logic is clear: if more countries use American AI, those nations are less reliant on China’s approach, which critics say is more susceptible to censorship and state use.
Brad Smith explained why Microsoft bars its employees from using DeepSeek AI, pointing to worries about user data flowing to China and possible propaganda risks. “The lesson from Huawei and 5G is that whoever gets there first will be difficult to supplant,” he said at the Senate hearing.
Support for AI Research, Training, and Broad Adoption
Industry leaders also say long-term investment is vital. Sam Altman (OpenAI) said the biggest advances in AI will come from the US over the next few years, but the government must help. “Investment in infrastructure is critical,” Altman stressed. That infrastructure includes:
- More data centres to support AI’s computational needs
- Power stations for the immense energy AI requires
- Training programmes to produce more electrical engineers and data scientists
- Support for high-quality AI research and development
Lisa Su (AMD) agreed, noting that the US risks falling behind in both research and the skills pipeline without more educational support.
Regulatory Barriers and the Risk of Losing the AI Race
Lessons from the Global AI Chip Market
America’s current export restrictions were designed to stop advanced AI chips from empowering China’s military or tightening the digital grip on its population. But many tech leaders say overly strict rules could backfire, hurting US companies while China finds other ways to innovate.
Microsoft, AMD, and OpenAI all voiced support for the Trump administration’s recent plan to rescind strict new export rules introduced during Biden’s final days. “The Biden administration’s misguided midnight AI diffusion rule on chips and model weights would have crippled American tech companies’ ability to sell AI to the world,” Senator Cruz told the committee, echoing the industry’s concerns.
DeepSeek’s Disruption and US Reactions
DeepSeek’s affordable, powerful AI model surprised many. It demonstrated how quickly Chinese innovation can close the gap—even under serious export controls. Reuters reports indicate that Huawei is preparing to ship huge volumes of new AI chips to domestic customers, responding to the limits placed on foreign technology.
The real fear for American officials is seeing a repeat of the 5G saga, where Huawei’s early global dominance made “catching up” very difficult for US and European firms. Executives note that preventing another repeat in the US-China AI competition means acting quickly to promote investments and global reach.
The Real Stakes in the US AI Race vs China
Why Infrastructure Matters as Much as Algorithms
Leading the global AI race isn’t just about who has the best model or the fastest chip. Infrastructure is central. Altman’s testimony highlighted that reliable data centres, plentiful energy, and skilled workers are non-negotiable foundations for US leadership.
Brad Smith spoke about the risks of lagging in basic education, especially for training “armies” of new electricians and engineers to support the industry’s expansion. AI’s footprint isn’t just in Silicon Valley; it’s in city power grids, server farms, and education systems all over the country.
The Global Battle for AI Adoption
Both US and Chinese officials understand it’s not only about developing the technology. The “winner” of the US-China AI competition will be the nation whose AI tools and values are most widely adopted. If American AI tools dominate worldwide, democratic norms are more likely to spread through global digital infrastructure. If China’s products lead, the risk is greater centralisation of data and less global privacy.
Source
Reuters – AI execs say US must increase exports, improve infrastructure to beat China
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