A short-term profit grab risks eroding America’s biggest advantage in the AI race.
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In the global race to build up computing power to fuel the development of artificial intelligence, the United States and its allies possess an extraordinary technological edge over China. But the Trump administration is on the verge of squandering this hard-won strategic advantage in pursuit of short-term profit, which would cost the United States dearly down the road.
The objective of existing U.S. export controls on AI chips is simple: to maximize U.S. leadership over China in AI by obtaining “as large of a lead as possible” in aggregate AI computing power. Data shows this strategy is working. Since the Biden administration’s decision in October 2022 to ban AI chip exports to China, the U.S. share of AI computing power has risen from 51 percent to 74 percent, while China’s share has plummeted from 33 percent to 14 percent.
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