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The west is already losing the AI arms race | Larry Elliott
- China's threat to western technological dominance is real with the arrival of DeepSeek, a budget Chinese chatbot available freely and at a tiny cost.
- In the early days of rapid economic development, China was seen as the place where US and European companies could outsource production.
- The creativity needed to come up with new ideas and new products would be stifled by China’s Marxist-Leninist system, but this view has proved too complacent.
- China has filed more patents than the rest of the world put together and Chinese universities are turning out on average more than 6,000 PhDs in Stem a month, more than double the number in the US.
- The US is aware of the threat to its hegemony and Biden imposed fresh restrictions on the export of US-developed computer chips to prevent countries such as China gaining access to advanced technology.
- China is already the biggest exporter of electric vehicles and lithium-ion batteries being produced by Chinese factories cost a seventh per kWh of what they did 10 years ago.
- The battle for AI supremacy is hotting up and China's technological sectors have not just magically appeared, they are a result of a strategic view of the industries in which China wanted to be competitive.
- This approach includes protecting industries, investing heavily to get them established, and patiently waiting for the results with no aversion to picking winners.
- Talk is cheap and achieving the aim of becoming an “AI superpower” should become easier as the cost of development comes down, but the contrast between UK and China's attitude to this goal is stark.
- Trump thinks that some competition from China is positive for the US tech sector, as the availability of lower-cost models will speed up the use of AI, but there are also potential risks.
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