Jason Voorhees
Say cheese
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I've made many threads about Google's insane return with Gemini 3, the development of GPT-5, Banana Image Pro now. The investments , the demand supply chain issues and future of AI but one important topic that needs more discussion let's look at the China angle.
www.forbes.com
I've passively been reading about this china news since a few years now but I've never actively followed the developments and have come back from my research so this is the deal. While the US chases AGI moonshots, Beijing's playing a smarter, scrappier game in the shadows of this tech arms race. So this is how it goes
China's not betting the farm on raw compute like Silicon Valley. Silicon valley has the deep pockets and unlimited money of the VCs so they can't compete with them on that front but they're all in on applied Al that's cheap, scalable, and woven into everything from factories to farms.
With an $8.4B national Al fund and local gov boosts, which is another stark difference. The AI development is mostly spear headed by trillion dollar companies in the private sector in the US while in China's case it is all state funded so they get exactly what they want and have much tighter control over the entire supply chain.
They're pushing "Al+" to supercharge all industries by 2030. But this is fundamentally different from the one you are thinking about. In this case
think open source models for quick exports and inference tuned data centers dodging US chip bans.
www.techrepublic.com
Huawei's leading alliances to build a domestic tech stack, slashing reliance on American hardware. It's pracgial war. Automate manufacturing drones and munitions at Foxconn scale, while Americans optimize McKinsey consultants
But here's where it gets even more interesting. The military angle and weaponizing of AI. There's been heavy push by the Chinese government for military use of AI and PLA's embedding Al for hyper fast battlefield decisions, adversary prediction, and counter-Al warfare drills where troops spoof enemy sensors with decoys.
www.defenseone.com
www.politico.com
Just a few months back china linked hackers just unleashed autonomous Al agents for espionage that hits on 30+ US targets probing critical infrastructure.
DeepSeek's r1 drop in January 2025 was revolutionary at its time and shook the narratives in AI world about China being much behind in deep reasoning. American AI firms have taken over deepseek since then but the very fact that they were able to establish a lead at all in the first place is an indication hinting Beijing has the capabilities to leapfrog again with less infra spend. This has started a sort of cold AI war between China and the US
TLDR
China's entire strategy is not to win the race for the smartest machine but to win the race for the most used machine. While Silicon Valley is fixated on the singularity chasing AGI capabilities that may never come or is decades away Beijing is effectively weaponizing AI now. And trying to beat Americans in what they do best. Supply chain logistics
U.S.-China AI Competition In The Spotlight
The U.S. and Chinese Governments recently announced AI development plans. U.S.-China AI competition features U.S. deregulation versus a big Chinese government approach.
www.forbes.com
I've passively been reading about this china news since a few years now but I've never actively followed the developments and have come back from my research so this is the deal. While the US chases AGI moonshots, Beijing's playing a smarter, scrappier game in the shadows of this tech arms race. So this is how it goes
China's not betting the farm on raw compute like Silicon Valley. Silicon valley has the deep pockets and unlimited money of the VCs so they can't compete with them on that front but they're all in on applied Al that's cheap, scalable, and woven into everything from factories to farms.
With an $8.4B national Al fund and local gov boosts, which is another stark difference. The AI development is mostly spear headed by trillion dollar companies in the private sector in the US while in China's case it is all state funded so they get exactly what they want and have much tighter control over the entire supply chain.
They're pushing "Al+" to supercharge all industries by 2030. But this is fundamentally different from the one you are thinking about. In this case
think open source models for quick exports and inference tuned data centers dodging US chip bans.
Chinese AI Firms Form Alliances to Reduce US Tech Dependence
President Donald Trump has placed a number of restrictions aimed at reducing China’s access to American tech.
Huawei's leading alliances to build a domestic tech stack, slashing reliance on American hardware. It's pracgial war. Automate manufacturing drones and munitions at Foxconn scale, while Americans optimize McKinsey consultants
But here's where it gets even more interesting. The military angle and weaponizing of AI. There's been heavy push by the Chinese government for military use of AI and PLA's embedding Al for hyper fast battlefield decisions, adversary prediction, and counter-Al warfare drills where troops spoof enemy sensors with decoys.
To China's war planners, AI is just another thing to deceive
The People’s Liberation Army is prepping for battles in which AIs work to distort each others' reality.
China’s AI warpath
China’s quiet push to embed AI into its military is prompting U.S. officials to reassess how the People’s Liberation Army may act in a conflict.
Just a few months back china linked hackers just unleashed autonomous Al agents for espionage that hits on 30+ US targets probing critical infrastructure.
DeepSeek's r1 drop in January 2025 was revolutionary at its time and shook the narratives in AI world about China being much behind in deep reasoning. American AI firms have taken over deepseek since then but the very fact that they were able to establish a lead at all in the first place is an indication hinting Beijing has the capabilities to leapfrog again with less infra spend. This has started a sort of cold AI war between China and the US
TLDR
China's entire strategy is not to win the race for the smartest machine but to win the race for the most used machine. While Silicon Valley is fixated on the singularity chasing AGI capabilities that may never come or is decades away Beijing is effectively weaponizing AI now. And trying to beat Americans in what they do best. Supply chain logistics
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