In August, researchers in China introduced a supercomputer called Darwin Monkey, which is modeled after the largest brain in the world. This marks the latest advancement in artificial intelligence within the People’s Republic of China. Recent developments, including a surprising AI achievement known as Deepseek and a humanoid robot competing in a half-marathon, highlight the potential risk for the U.S. in lagging behind China in the AI race. The outcomes are still somewhat uncertain. What does it mean if China comes out on top?
China isn’t necessarily trying to craft the best AI technology like the U.S. Instead, it is building an AI ecosystem that focuses on expanding technology swiftly and at a low cost. If successful, Beijing could gain unprecedented global influence—controlling not just markets, but also the perceptions and actions of its citizens. To counter this, the U.S. needs a revised competitive strategy that emphasizes technological scale and embraces open-source solutions.
The AI landscape presents strategic advantages for China. It’s reshaping the hierarchy of the internet age, creating an opportunity for the country to leapfrog the U.S. in leadership. Additionally, the AI revolution is developing new forms of global control. Not only can China oversee international information flows, but it also has the capacity to shape how that information is processed and disseminated—all of which impacts resources and systems that depend on it.
Beijing is well-positioned to seize this moment. In the competitive AI market, success is often determined by performance, price, and the scale of adoption. China leverages state management in its commercial sector to excel in all these areas, integrating advanced technologies from both domestic and international sources. With unique data advantages, China is crafting a closed ecosystem that optimizes performance.
Currently, China’s efforts seem to be paying off. Instead of merely catching up, it appears to be leading in new AI platforms that define this era. For instance, companies like Bytedance and Shein are innovating in AI-driven social media and e-commerce, respectively. Furthermore, China’s expertise is particularly noticeable in connecting software and hardware, possibly giving it an edge in smart city technology and agriculture.
In the near future, the use of Chinese AI platforms will likely become commonplace for various applications, from software development to manufacturing. These advancements could allow Chinese companies to claim significant market shares and cement Beijing’s dominance in both physical and virtual realms.
As things stand, if current trends continue, China may control the AI landscape much like the U.S. currently regulates the internet. This scenario could create a concerning level of international dependence on China. Chinese firms might emerge as pivotal players in the global economy, placing Beijing in a position to not only access global data but also shape its utilization in social media and surveillance systems, influencing various aspects of governance and society.
For the United States, such a reality could be quite alarming. To avert this situation, it’s imperative for the U.S. to shift away from its traditional focus on innovation as the primary strategy for competition. In the current AI race, what truly matters is not speed, but scale.
OpenAI’s initial approach, which prioritized exquisite innovation, seems ineffective against China’s advances, as reinforced by Deepseek’s performance. Similarly, Nvidia’s competitive outlook is challenged by Huawei’s new AI chip technology, which demonstrates a similar roadmap to success. Beijing effectively introduces and optimizes cutting-edge technologies, often outpacing American trust and security measures thanks to a focus on lower-cost solutions.
America needs to redefine its strategy entirely. Washington should prioritize the defense of its home market instead of simply protecting technologies from China. Creating a secure marketplace will encourage AI innovation domestically, allowing the U.S. technology sector to thrive within a protected environment. By adopting open-source methodologies across the AI value chain, the next generation of American industry could harness competitive advantages to foster independent, valuable applications that are removed from Chinese influence.
The U.S. must engage actively in the race for humanoid robots, as it’s become essential to be part of this broader battle.
