China accelerates AI development push to challenge US tech dominance

What was once a US-led innovation race is now a high-stakes competition for economic power, national security, and technological leadership.

FOX Business’ Madison Allworth joined Maria Bartiromo on “Mornings with Maria” to report on how America’s leadership in artificial intelligence (AI) is being tested as China accelerates its efforts to become a global technology power.

AI is no longer limited to powering search engines and chat tools like ChatGPT. It is reshaping how companies produce goods, analyze markets, secure networks, and move capital. The country that builds the most advanced AI systems will have a strong advantage in productivity and global influence, making this rivalry far more important than previous technology races.

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American companies still dominate the development of artificial intelligence globally, supported by strong private sector investments in chips, cloud computing, and advanced software. This market-driven system helps American companies stay agile and continue to push innovation ahead of their competitors.

But China is working to narrow the gap. Beijing has made artificial intelligence a national priority, aiming to reduce its dependence on Western technology.

Industry leaders say the race is still far from settled.

“I expect xAI to continue to be a very strong player,” said Guillermo Rauch, CEO of Vercel. “They are making significant investments in logic and reasoning.” “I expect them to continue to make amazing progress and I would never count out Elon [Musk] As one of the best players in this field.”

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Major US technology companies are building extensive infrastructure to support the next generation of artificial intelligence. “These data centers are creating thousands of new jobs… It’s a huge contribution to the economy, and it’s really going to help this country win the AI ​​race,” Joel Kaplan, Meta’s chief global affairs officer, told FOX Business.

Google CEO Sundar Pichai told “Fox News Sunday” that the United States must “strike the right balance” on regulating artificial intelligence or risk falling behind China. He warned that more than a thousand AI-related bills circulating in state legislatures could create a confusing web of rules “that makes it difficult for American companies to compete globally.”

Pichai called for a coordinated national approach, saying governments and private companies must work together “to create standards and frameworks for all of us to use technology in a collaborative way.”

The competition extends beyond software development. Technology analysts and economists say AI is likely to impact where jobs are created, how companies operate, and which countries gain an advantage in the digital economy.

“It’s not about a quick race of who can come up with the latest or greatest AI model,” noted Jeff Ding, a professor at George Washington University who specializes in Chinese technology. “It’s about which country can win this long-term competition to adopt and spread AI throughout the economy.”

As the United States and China invest billions in artificial intelligence, the two countries are racing to secure long-term economic and strategic advantages in the technology that is reshaping the global economy.

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