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Why are we in an AI arms race? What's actually at stake?

The US blocked high power graphics cards to specific countries, and then got all shaken up when their money moat was pole-vaulted by an embargo'd country wielding jank cards.

Why is this a big deal, exactly?

Who benefits if the US has the best AI, and who benefits if it's China?

Is this like the Space Race, where it's just an effort to spit on each other, but ultimately no one really loses, and cool shit gets made?

What does AI "supremacy" mean?

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  • The two biggest implications in my opinion are firstly that it shows that this "trillion dollar" industry is a massively overvalued bubble waiting to pop. What takes an American company several hundred billion dollars and a decade of research takes deepseek less than $6M and 18 months. To drive the nail in the coffin even further they recently announced Janus Pro which is an image generator rivaling Dall-E and Stable Diffusion. All this by an embargoed company that didn't even exist when the first editions of these chatbots and and image generators were released.

    Second, there's the "national security" implications since the US wants to aggressively militarize AI tech and China just demonstrated that they're already caught up in a fraction of the time for a fraction on the cost so there's no way they don't surpass US capabilities within the next year, if they haven't already.

    I think this may be major turning point for global alliances and there will be massive realignment away from the US and toward China on the geopolitical stage. The US and its oligarchy have been called out on their bullshit essentially.

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