The development of artificial intelligence (AI) has become a crucial aspect of international relations, with the US and China vying for dominance in this field. According to a report by Stanford University, the US has created 40 notable AI models in 2024, while China has produced 15.
However, the US's plans to impose tariffs on technology equipment suppliers from China may hinder Big Tech's investment in AI infrastructure, potentially undermining the administration's goal of advancing AI development. This move could lead companies like Oracle and SoftBank to reallocate their spending from expansion to procurement hedging or sourcing shifts.
The proposed deal involving TikTok's US operations aims to dilute Chinese ownership below the 20% threshold required by US law and potentially rescue the app from a looming ban. The White House-led talks are focusing on increasing stakes from non-Chinese investors like Jeff Yass' Susquehanna International Group and Bill Ford's General Atlantic.
A recent Pew Research Center survey found that Americans are more divided on banning TikTok now than two years ago, with 8 in 10 supporters citing data security concerns as a major factor. Chris Pierson, CEO of BlackCloak, believes that if the algorithm remains under ByteDance's control, data and algorithmic control pose ongoing risks.
The US is also planning targeted tariffs for semiconductors, which would further disrupt the industry. This has significant implications for the global AI landscape, as semiconductors are a crucial component in the development of AI models.