US-China on divergent paths in race for AI supremacy

The race to build artificial intelligence-driven economies is transforming how the global economy and societies are organized. Breakthroughs in generative AI and machine learning in recent years have accelerated a new industrial revolution—one in which nations that can develop and deploy the most powerful computing infrastructure will be best positioned to reap the most economic, military and geopolitical advantages.

A central part of this competition is AI data centers, also called “AI factories.” Unlike traditional data centers, these sprawling facilities house a high density of specialized AI chips known as graphics processing units, or GPUs.

They require customized architectures optimized for AI workloads and consume vast amounts of energy. Building them demands massive capital, sustained government and private-sector investment, and institutional flexibility to adapt to the disruptive innovations of an emerging AI-driven economy.

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